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

Elevate Franchise Success with

Strategic Human Resource Solutions

Franchise Owners How Does

Health Care Reform

Affect Your Franchise?

© October 2012 Franchise Workforce



Presented by:

Under 50 Employees



How to Prepare

Review each profile

Find your current situation

Get advice from HR & benefits experts

Develop an action plan and start



Sparkling Fresh Maids Profile Small franchise with

under 25 employees

Franchise owner

does not provide

medical coverage

Average annual

employee wages

$20,000



Sparkling Fresh Maids Impacts Franchise owner is exempt from penalties.

Franchise owner cannot qualify for a tax credit.

Franchise employees may qualify for subsidy based on income.

Most low-wage franchise employees will be eligible for a subsidy to buy health coverage from the state exchanges.



Kid Kare Center Profile Small franchise with

under 25 employees

Franchise owner

does offer group

medical coverage

Average annual

employee wages

$25,000



Kid Kare Center Impacts Franchise owner is exempt from penalties.

Franchise owner will qualify for a tax credit: For providing qualified coverage, and

A minimum of 50% of the individual premium is contributed by the franchise owner.

Franchise employer contributions are tax-deductible on amounts exceeding the tax credit received.

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



Zeus Auto Repair

Profile Small franchise with

under 25 employees

Franchise owner

does not provide

medical coverage

Average annual

employee wages

$52,000



Zeus Auto Repair

Impacts Franchise owner is exempt from penalties.

Franchise owner cannot qualify for a tax credit.

Franchise employees can purchase medical coverage through the state exchanges.

Eligible franchise employees may qualify for subsidies based upon income.



My Dental Franchise Profile Small franchise with

under 25 employees

Franchise owner

does offer group

medical coverage

Average annual

employee salary

$52,000



My Dental Franchise Impacts Franchise owner is exempt from penalties.

Franchise owner cannot qualify for tax credits.

Franchise owner’s contributions to employee premiums are tax-deductible.

Franchise employee contributions can be

pretax under a Section 125 plan.



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Important Guidelines contained herein are subject to change

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

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

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

Information is current as of October 2012.

For the most current guidelines, visit www.healthcare.gov or www.irs.gov.

http://www.healthcare.gov/

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

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