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Obamacare Makes Hiring Full-Time Workers More Expensive

Created on October 11, 2011

Obamacare Makes Hiring Full-Time Workers More Expensive

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

TOTAL

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

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