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Conducting a Business Research
RES/351
February 10, 2014

Examination of Problem and Purpose

T&W Operations is an information technology and logistics company searching for the most cost effective way to providing insurance coverage to 75 new and current fulltime employees as mandated by the Affordable Care Act. This act requires businesses to provide all fulltime employees health insurance meaning an increase in company costs to organizations like T&W Operations Inc. To concur with a large number of new customer proposals, T&W is now hiring 100 new employees, 50 of them being fulltime associates, equaling a total of 150 individuals, 75 fulltime and 75 part time employees. The company must find the most cost effective insurance plan to provide too all 75 new and current fulltime employees health insurance to abide by the Affordable Care Act requirements.

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T&W’s Insurance Costs Increase: The Significance and Solution
This significance of the solution is huge because if T&W Operations does not provide affordable health coverage to 75 fulltime associates, the company will pay a tax penalty of $2000 a person minus the first 30 employees, meaning T&W will owe $90,000 annually to the remaining 45 employees who did not receive insurance for a particular time period. According to the online forum www.obamacarefacts.com, “ The Obama Care "employer mandate" is a requirement that all businesses with over 50 full-time equivalent (FTE) employees provide health insurance for their full-time employees, or pay a per month "Employer Shared Responsibility Payment" on their federal tax return.” The purpose of this research is to conclude how T&W Operations will afford health care to new and existing employees without incurring an extreme rise in insurance costs. To begin with, our team must consult with T&W’s human resource

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