Benefits for staffing agencies, for both the internal team and temporary employees

Ares Benefit Group works with staffing, temp, and similar workforce firms. For this site, the 2-to-50 focus is on firms whose employee count — including temporary employees, when they are your employees — is in that range, or whose internal team is in that range and whose temporary workforce needs its own, carefully counted design. If your temporary workforce already puts you over the applicable large employer line, say so immediately; the federal size test, not the size of the recruiting desk, is the one that matters.

How staffing firms actually staff

• The agency is often the employer of the temporary worker. When that is the case, those people are your employees for benefits and for size tests, even if they sit at a client's site. Do not count only the recruiters.
• Assignments are short. Waiting periods, short tenure, and participation rules can make a traditional group plan awkward for temporary employees. An ICHRA may be offered with a waiting period class, or reserved for the internal team, within the federal class rules. A QSEHRA may exclude employees who have not completed 90 days, and may exclude part-time or seasonal employees.
• Internal staff versus field or temporary staff. These groups often should not share one structure. Permitted ICHRA classes include full-time, part-time, hourly or salaried, work location, and waiting period. We will map your idea onto those classes rather than invent a "temps versus desk" class that is not in the rules.
• Multi-site and multi-state assignments. Temporary employees may work in many states. An ICHRA, where each person buys coverage where they live, is often a practical comparison to a group plan. See multi-state teams.
• Clients will ask what you offer. A clear, accurate description of eligibility is part of how you sell the service. Do not promise coverage you cannot legally offer, and do not describe 1099 workers as your employees in a proposal.

Structures we compare for a team this size

For many agencies, we design one arrangement for the internal team and, if you want to cover temporary employees, a second look that respects waiting periods, hours, and size tests. Sometimes the right answer is to cover the internal team now and leave temporary-employee coverage for a later, carefully counted phase.

• SHOP and other group coverage, when you want one employer-sponsored medical plan and you can meet eligibility and participation rules.
• A level-funded arrangement, when a carrier offers one for your census. We compare it with fully insured group coverage and do not treat either as automatically better.
• An ICHRA, when you want a set contribution and employees choose individual coverage. Permitted classes include full-time, part-time, hourly or salaried, work location, and a waiting period. It is for employees, not for a self-employed owner.
• A QSEHRA, when you are not an applicable large employer and you are not offering a group health plan. See ICHRA vs QSEHRA if both are on the table.
• Section 125 for pre-tax employee premium contributions on a group plan. A QSEHRA cannot be funded by salary reduction.
• Group life and disability and voluntary benefits.

A company under 50 full-time employees, including full-time equivalents, is generally not required by federal law to offer health coverage. If you have fewer than 25 full-time equivalents and you meet the wage, contribution, and SHOP rules, look at the Small Business Health Care Tax Credit.

What to send us

A count of internal employees, a count of temporary employees you employ (not just people currently on assignment, if you remain the employer between assignments), hours, states, and any 1099 arrangements. If you are close to 50 full-time employees including equivalents, say so in the first note.

Tell us about your staffing firm

Our agents are licensed in all 50 states.