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Elevate Franchise Success with
Strategic Human Resource Solutions
Franchise Owners How Does
Health Care Reform
Affect Your Franchise?
© October 2012 Franchise Workforce
Elevate Franchise Success with
Strategic Human Resource Solutions
Presented by:
Under 50 Employees
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Elevate Franchise Success with
Strategic Human Resource Solutions
How to Prepare
Review each profile
Find your current situation
Get advice from HR & benefits experts
Develop an action plan and start
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Elevate Franchise Success with
Strategic Human Resource Solutions
Sparkling Fresh Maids Profile Small franchise with
under 25 employees
Franchise owner
does not provide
medical coverage
Average annual
employee wages
$20,000
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Elevate Franchise Success with
Strategic Human Resource Solutions
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.
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Elevate Franchise Success with
Strategic Human Resource Solutions
Kid Kare Center Profile Small franchise with
under 25 employees
Franchise owner
does offer group
medical coverage
Average annual
employee wages
$25,000
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Elevate Franchise Success with
Strategic Human Resource Solutions
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.
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Elevate Franchise Success with
Strategic Human Resource Solutions
Zeus Auto Repair
Profile Small franchise with
under 25 employees
Franchise owner
does not provide
medical coverage
Average annual
employee wages
$52,000
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Elevate Franchise Success with
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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.
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Elevate Franchise Success with
Strategic Human Resource Solutions
My Dental Franchise Profile Small franchise with
under 25 employees
Franchise owner
does offer group
medical coverage
Average annual
employee salary
$52,000
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Elevate Franchise Success with
Strategic Human Resource Solutions
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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Elevate Franchise Success with
Strategic Human Resource Solutions
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
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Elevate Franchise Success with
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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.