Obamacare Makes Hiring Full-Time Workers More Expensive
Created on October 11, 2011
The federal health care law significantly increases the costs of hiring full-time workers. In addition to minimum wages, unemployment and payroll taxes, employers will have to spend nearly $3,600 for single employees and more than $11,000 for employees with families to meet the health care law’s requirements.
Employer Premium for Health Plan
UI Taxes: $352
Payroll Taxes: $1,146
Minimum Wage: $14,978
Minimum Yearly Costs Incurred by Employers per Full-Time Employee, Based on 2,000 Hours of Work
FAMILY HEALTH PLAN
SINGLE HEALTH PLAN
Note: Figures are weighted averages based on state private-sector employment.
Source: Authors’ calculations based on data from the U.S. Department of Labor, Congressional Budget Office estimates of premiums in 2016 under PPACA, and the 2010 Medical Expenditure Panel Survey—Insurance Component. See Footnote 8 for methodology.
Chart 1 • WM 3390