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Survey: Fewer accounting firms say Affordable Care Act is slowing hiring
Raleigh, N.C., May 27, 2014 — The effects of the Affordable Care Act (ACA) may be weighing less heavily on the hiring plans of U.S. privately held companies this year, according to Sageworks, a financial information company. Slightly more than half of accountants working with privately held businesses told Sageworks in a new survey that the ACA is making it less likely that their clients will hire in the next 12 months. But that’s a smaller percentage than Sageworks found in its previous survey conducted in the summer of 2013. Then, twothirds of respondents said the ACA was making it less likely that private companies would hire in the year ahead.
In addition, a slightly larger percentage this year predicted the ACA would have no impact on hiring in the next year. Of the more than 500 firms surveyed in April and May of this year, 19 percent foresaw no impact on hiring, 20 percent were unsure and 5 percent noted that the implementation of the ACA will lead to more hiring in the next 12 months.
Barring further delays, the employer mandate, which requires employers with over 50 full-time employees to provide health insurance to full-time workers, is set to begin in 2015 for businesses with over 100 employees and in 2016 for businesses with 50 to 99 employees.
Sageworks’ new survey also asked accountants about their business clients’ general hiring plans for the next 12 months. More than half said businesses plan to maintain their headcount. Just over 17 percent said businesses are planning to add employees, and 12 percent responded that businesses are planning to reduce headcount. In the summer 2013 survey, over 60 percent of respondents noted that their clients planned to maintain their headcount, and only 13 percent responded that businesses planned to increase hiring.
About the Survey
Sageworks conducted the online survey between April 21, 2014, and May 6, 2014, collecting responses from 534 accounting professionals from approximately 522 unique accounting and business advisory firms. The poll’s respondents were all clients of Sageworks and were not randomly selected.
Sageworks is a financial information company and the leader in the analysis of privately held companies. The company provides risk-management solutions to financial institutions and financial analysis and benchmarking applications to accounting firms and private companies. Sageworks’ data and applications are used by thousands of accounting firms and financial institutions across North America and internationally.