1. Under 50 Employees
Franchise Owners
How Does
Health Care Reform
Affect Your Franchise?
Presented by:
Elevate Franchise Success with
Strategic Human Resource Solutions © October 2012 Franchise Workforce

2. How to Prepare
 Review each profile
 Find your current situation
 Get advice from HR & benefits experts
 Develop an action plan and start
Elevate Franchise Success with
Strategic Human Resource Solutions

3. Sparkling Fresh Maids
Profile
 Small franchise with
under 25 employees
 Franchise owner
does not provide
medical coverage
 Average annual
employee wages
$20,000
Elevate Franchise Success with
Strategic Human Resource Solutions

4. 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.
Elevate Franchise Success with
Strategic Human Resource Solutions

5. Kid Kare Center
Profile
 Small franchise with
under 25 employees
 Franchise owner
does offer group
medical coverage
 Average annual
employee wages
$25,000
Elevate Franchise Success with
Strategic Human Resource Solutions

6. 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.
Elevate Franchise Success with
Strategic Human Resource Solutions

7. Zeus Auto Repair
Profile
 Small franchise with
under 25 employees
 Franchise owner
does not provide
medical coverage
 Average annual
employee wages
$52,000
Elevate Franchise Success with
Strategic Human Resource Solutions

8. 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.
Elevate Franchise Success with
Strategic Human Resource Solutions

9. My Dental Franchise
Profile
 Small franchise with
under 25 employees
 Franchise owner
does offer group
medical coverage
 Average annual
employee salary
$52,000
Elevate Franchise Success with
Strategic Human Resource Solutions

10. 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.
Elevate Franchise Success with
Strategic Human Resource Solutions

11. Franchise Help Center
 Customized HR Outsourcing Strategies
 Employee Benefits / Risk Management
 Human Resources Compliance Expertise
 Integrated HR & Recruiting Technology
Call 561-600-5554 or franchiseworkforce.com
Follow the Franchise Workforce library:
www.slideshare.net/franchiseworkforce
Elevate Franchise Success with
Strategic Human Resource Solutions

12. 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.
Elevate Franchise Success with
Strategic Human Resource Solutions