Under the Affordable Care Act's (ACA) employer mandate, large employers face penalties for failing to offer minimum essential coverage to full-time employees and their dependents, or for offering eligible employer-sponsored coverage that is not affordable or does not provide minimum value. The IRS has acknowledged the difficulty of applying the employer mandate to employees of temporary staffing firms and has provided rules for determining who (between the temporary staffing firm and its client-employer) is responsible for complying with the mandate.

To learn more about temporary staffing firms and the ACA, see Practice Note, Temporary Staffing Firms and the ACA's Employer Mandate.