ShiftPixy Sees Opportunity in IRS Notices of ACA Non-Compliance
IRVINE, Calif., Sept. 10, 2018 (GLOBE NEWSWIRE) -- ShiftPixy, Inc. (NASDAQ: PIXY), a disruptive workforce engagement platform provider, notes that thousands of businesses across the U.S. are now receiving penalty notices (letter 226-J) from the IRS for failure to comply with provisions of the Affordable Care Act (ACA) for the 2015 reporting year. The penalties, which relate to the alleged failure of large employers (those with more than 50 employees) to provide adequate healthcare insurance that is affordable and meets a minimum value, are often in the hundreds of thousands of dollars which can potentially bankrupt smaller firms.
ShiftPixy, with its roots in staffing compliance, protects its clients from such unwelcome violation notices and multiple other compliance burdens, something that large, well known competitors fail to do. Unlike others, ShiftPixy embraces employer status of the workforce, offering employment-related benefits and protections, all while handling administrative and compliance burdens for the operators.
“The onslaught of violation notices is an outright disaster for thousands of American businesses that could be forced to shut their doors if unable to afford these sizable fines,” stated Scott Absher, Co-Founder and CEO of ShiftPixy. “If they believe they can secure a bank loan to cover the fine, they can think again as most banks won’t touch a prospective borrower facing an IRS penalty.”
ShiftPixy’s innovative employment model with its sophisticated technology platform and compliance orientation represents the perfect solution for employers operating in the Gig Economy. Using sophisticated technology, ShiftPixy efficiently matches employers with the qualified workers they need, all while providing compliance peace of mind for the employers entering the ShiftPixy ecosystem.
Mr. Absher continued, “As evidenced by our surging demand and rapid growth, we’re again proving that our solution is the gold standard for employers looking to succeed and remain compliant in the Gig Economy. We suspect these IRS letters hitting mailboxes by the thousands will only drive more employers to realize the value of a partnership with ShiftPixy.”
ShiftPixy further notes that the IRS is already laying the groundwork to issue violation letters pertaining to the 2016 reporting year.
To discover the power of ShiftPixy’s self-delivery platform for your restaurant please select one of our convenient webinar timeslots at: https://www.shiftpixy.com/webinars/ or call us at 888-798-9200 to register.
ShiftPixy (NASDAQ: PIXY) is a disruptive human capital management platform, revolutionizing employment in the Gig Economy by delivering a next-gen mobile engagement technology to help businesses with shift-based employees navigate regulatory mandates, minimize administrative burdens and better connect with a ready-for-hire workforce. With expertise rooted in management’s nearly 25 years of workers’ compensation and compliance programs experience, ShiftPixy adds a needed layer for addressing compliance and continued demands for equitable employment practices in the growing Gig Economy.
ShiftPixy Cautionary Statement
The information provided in this release includes forward-looking statements, the achievement or success of which involves risks, uncertainties, and assumptions. Although such forward-looking statements are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate. If any of the risks or uncertainties, including those set forth below, materialize or if any of the assumptions proves incorrect, the results of ShiftPixy, Inc., could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties include, but are not limited to, risks associated with the nature of our business model; our ability to execute the Company's vision and growth strategy; our ability to attract and retain clients; our ability to assess and manage risks; changes in the law that affect our business and our ability to respond to such changes and incorporate them into our business model, as necessary; our ability to insure against and otherwise effectively manage risks that affect our business; competition; reliance on third-party systems and software; our ability to protect and maintain our intellectual property; and general developments in the economy and financial markets. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, except as required by applicable securities laws. The information in this press release shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and will not be deemed an admission as to the materiality of any information that is required to be disclosed solely by Regulation FD. Further information on these and other factors that could affect the financial results of ShiftPixy, Inc., is included in the filings on Forms 1-A and 10-K and in other filings we make with the Securities and Exchange Commission from time to time. These documents are available on the "SEC Filings" subsection of the "Investor Information" section of our website at https://ir.shiftpixy.com/financial-information/sec-filings.
Consistent with the SEC’s April 2013 guidance on using social media outlets like Facebook and Twitter to make corporate disclosures and announce key information in compliance with Regulation FD, ShiftPixy is alerting investors and other members of the general public that ShiftPixy will provide updates on operations and progress required to be disclosed under Regulation FD through its social media on Facebook, Twitter, LinkedIn and YouTube. Investors, potential investors, shareholders and individuals interested in our Company are encouraged to keep informed by following us on Facebook, Twitter, LinkedIn and YouTube.
Released September 10, 2018