Transitioning From Cash-In-Lieu

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Transition from cash-in-lieu issue Transition from cash-in-lieu issue

Prior to the Employer Mandate under the Affordable Care Act (ACA), government contracting employers had little motivation to change from the common practice of paying cash-in-lieu to providing benefits. Now under the ACA, all large employers are required to offer employees with a valuable and affordable insurance program or pay a hefty, non-tax deductible fine. Although this change from cash in employee’s pockets to a benefits program makes good business sense, communicating it to employees can be difficult as most may see it as a reduction in pay.

PSA’s proven turnkey solution

It is key to have the right partner that understands the importance of and can handle delivery of employee communication to facilitate a smooth transition as well as help you be more compliant and competitive. PSA’s Federal Government Contractor’s Benefit Program is unique – we go beyond benefits brokerage as our SCA specialists can also help you create and implement a clear communication strategy tailored to your company’s specific needs.