Franchise workforce health care reform options under 50 employees 4 1-2013

Elevate Franchise Success with Strategic Human Resource Solutions

Franchise Owners Franchise Owners How DoesHow Does

Health Care Reform Health Care Reform Affect Your Franchise Affect Your Franchise??

© October 2012 Franchise WorkforceElevate Franchise Success with

Strategic Human Resource Solutions

Presented by:

Under 50 EmployeesUnder 50 Employees


How to PrepareHow to Prepare

Review each profileReview each profile

Find your current situationFind your current situation

Get advice from HR & benefits expertsGet advice from HR & benefits experts

Develop an action plan and startDevelop an action plan and start


Sparkling Fresh MaidsSparkling Fresh MaidsProfileProfile Small franchise with Small franchise with

under 25 employeesunder 25 employees Franchise owner Franchise owner

does does notnot provide provide medical coverage medical coverage

Average annual Average annual employee wages employee wages $20,000$20,000


Sparkling Fresh MaidsSparkling Fresh MaidsImpactsImpacts Franchise owner is exempt from penalties.Franchise owner is exempt from penalties. Franchise owner cannot qualify for a tax Franchise owner cannot qualify for a tax

credit.credit. Franchise employees may qualify for subsidy Franchise employees may qualify for subsidy

based on income.based on income. Most low-wage franchise employees will be Most low-wage franchise employees will be

eligible for a subsidy to buy health coverage eligible for a subsidy to buy health coverage from the state exchanges.from the state exchanges.


Kid Kare CenterKid Kare CenterProfileProfile Small franchise with Small franchise with


doesdoes offer group offer group medical coverage medical coverage



Kid Kare CenterKid Kare CenterImpactsImpacts Franchise owner is exempt from penalties.Franchise owner is exempt from penalties. Franchise owner will qualify for a tax credit:Franchise owner will qualify for a tax credit:

For providing qualified coverage, andFor providing qualified coverage, and A minimum of 50% of the A minimum of 50% of the individualindividual premium is premium is

contributed by the franchise owner.contributed by the franchise owner. Franchise employer contributions are tax-Franchise employer contributions are tax-

deductible on amounts exceeding the tax deductible on amounts exceeding the tax credit received.credit received.

Franchise employee contributions can be Franchise employee contributions can be pretax under a Section 125 planpretax under a Section 125 plan..


Zeus Auto RepairZeus Auto RepairProfileProfile Small franchise with Small franchise with


does does notnot provide provide medical coveragemedical coverage



Zeus Auto RepairZeus Auto RepairImpactsImpacts Franchise owner is exempt from penalties.Franchise owner is exempt from penalties.

Franchise owner cannot qualify for a tax credit.Franchise owner cannot qualify for a tax credit.

Franchise employees can purchase medical Franchise employees can purchase medical coverage through the state exchanges.coverage through the state exchanges.

Eligible franchise employees may qualify for Eligible franchise employees may qualify for subsidies based upon income.subsidies based upon income.


My Dental FranchiseMy Dental FranchiseProfileProfile Small franchise with Small franchise with


doesdoes offer group offer group medical coveragemedical coverage

Average annual Average annual employee salary employee salary $52,000$52,000


My Dental FranchiseMy Dental FranchiseImpactsImpacts Franchise owner is exempt from penalties.Franchise owner is exempt from penalties. Franchise owner cannot qualify for tax Franchise owner cannot qualify for tax

credits.credits. Franchise owner’s contributions to Franchise owner’s contributions to

employee premiums are tax-deductible.employee premiums are tax-deductible. Franchise employee contributions can be Franchise employee contributions can be

pretax under a Section 125 plan.pretax under a Section 125 plan.


Franchise Help CenterFranchise Help Center Customized HR Outsourcing StrategiesCustomized HR Outsourcing Strategies Employee Benefits / Risk ManagementEmployee Benefits / Risk Management Human Resources Compliance ExpertiseHuman Resources Compliance Expertise Integrated HR & Recruiting TechnologyIntegrated HR & Recruiting Technology

Call 561-600-5554 or Call 561-600-5554 or franchiseworkforce.comfranchiseworkforce.com

Follow the Franchise Workforce library: Follow the Franchise Workforce library: www.slideshare.net/franchiseworkforcewww.slideshare.net/franchiseworkforce


ImportantImportant Guidelines contained herein are subject to change Guidelines contained herein are subject to change

as the rules under the U.S. Affordable Care Act as the rules under the U.S. Affordable Care Act change. (Certain provisions effective 1- 01- 2014)change. (Certain provisions effective 1- 01- 2014)

Franchise Workforce Franchise Workforce suggests that you consult your suggests that you consult your tax advisor regarding your specific tax issues.tax advisor regarding your specific tax issues.

Rules and testing apply to Rules and testing apply to Part-TimePart-Time and and Seasonal Seasonal Employees;Employees; consult your advisor for details. consult your advisor for details.

Information is current as of October 2012. Information is current as of October 2012. For the most current guidelines, visit For the most current guidelines, visit

www.healthcare.gov or or www.irs.gov.www.irs.gov.

Franchise workforce health care reform options under 50 employees 4 1-2013

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