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Aca and Compensation

In: Business and Management

Submitted By yakelly
Words 787
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Running head: The Impact of the Affordable on Compensation

The Impact of the Affordable on Compensation
Yvette Andrea Kelly-Walker
UMUC HRMD 640 9040

Your abstract should be one paragraph and should not exceed 120 words. It is a summary of the most important elements of your paper. All numbers in the abstract, except those beginning a sentence, should be typed as digits rather than words. To count the number of words in this paragraph, select the paragraph, and on the Tools menu click Word Count.

The Impact of the Affordable on Compensation
The Affordable Care Act’s main objective to present all American citizens with affordable health care. Chappell 2013 confirms that this stipulation also makes health coverage affordable for all employees. The benefits program must not discriminate between high and low earning employees, and organizations with discriminatory benefit packages will face penalties of $100 a day per employee. This can amount to as high as $500,000. Therefore, the implementation of the Affordable Care Act will impact the compensation package to employees. Kokulak 2014 confirms that the Affordable Care Act (ACA) is predicted to have an indirect impact on compensation in both the short and long term. Therefore it is critical that business managers understand the potential implications of the ACA on compensation (p. 27).
Compensation and benefits are a vital component of every organization. An effective compensation package and benefits program serve as tool to attract, motivate and retain employees in an organization. In addition to ensuring the motivation and retention of employees, an organization must be in compliance with all local, state, and federal laws. The recently implemented Affordable Health Care Act (ACA) is poised to impact compensation. According to Warmington & Hillman 2013 employers with fewer than 25…...

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