government relations report. health care signed into law 3/30 important dates for franchisees: 2014:...
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Government Relations Report
Health Care
Signed into law 3/30 Important dates for franchisees:
2014: Employer requirements begin 3/1/13: Notification to employees required
Exemptions: Employers with less than 50 full-time equivalent
employees (FTEE’s)
Health Care: Requirements
Employers must provide “minimum essential coverage”Covers “essential health benefits”Limits cost-sharing (deductibles)Has an actuarial value of at least 60%
Further clarification will be provided by U.S. HHS via regulation
Health Care: Calculations
How to calculate who is covered:1) Determine if you have 50 or more full-time
equivalent employees (based on 30 hour work week)a. Ex. – 2 part-time employees working 15 hours each =
1 full time employee
2) If >50, you must provide health insurance to your actual full-time employees only
3) No penalties for not providing health care to the first 30 actual full-time employees
Health Care: Penalties Do not offer coverage AND have at least one
F/T employee who uses a tax credit$2,000 per full-time employee per year (first 30
waived) Offers coverage but at least 1 F/T employee
uses the tax credit$3,000 per each employee receiving tax creditNot to exceed $2,000 x FTE’s (above)
Offers coverage but FTE’s contribution is 8-9% of incomeEmployer must offer voucher to avoid penalties
Health Care: Next Steps
HHS and IRS already have “guidance” on their websites HHS: Group Health Plans and Health Insurance for
children up to age 26 IRS: Small business tax credit
July 2010: HHS must create a website with information for consumers and small business
Everything must be completed by 2014: HHS Treasury DOL
Credit Card Interchange Bills
Credit Card Fair Fee Act Requires credit card companies to negotiate
directly with merchants to lower interchange rates.
Hearing in April - No vote taken Credit Card Interchange Fees Act
Allows merchants to:• Provide discounts for other types of payments• Set minimums/maximums for cc purchases
FTC oversight and required transparency
Credit Card Interchange Fees – Financial Services
Mid-May: Sen. Durbin (IL) introduces interchange amendment to financial reform bill which: Requires Fed to issue regulations where
interchange fees are "reasonable and proportional" to the cost
Disallows anti-competitive restrictions placed by Visa and Mastercard.
• Allows merchants to offer discounts for competing cards and cash, checks or debit cards and set minimum and maximum transaction amounts.
Provides exemption for small banks
Credit Card Interchange Fees – Financial Services
5/13: Amendment passes 5/20: Bill passes out of Senate Next steps:
Conference committeeNote: Interchange is NOT in House version and
strong opposition to keep it out! Stay tuned for an Action Alert!
Paycheck Fairness Act
Provisions: Requires a higher “business necessity” standard on
employers to prove no bias in any pay discrepancies
Cannot pay employees differently based on market forces, negotiating ability, past salary or the amount of revenue generated
Provides for unlimited "punitive and compensatory" damages for pay discrimination
• Trial Lawyers benefit; Employers suffer
Paycheck Fairness Act
Status: Passed out of the House in January 2009
with Ledbetter bill (now law) In Senate, 42 co-sponsors – need 60 to passSenate looking for post-health care “win”
prior to electionsNo vote scheduled – may come up quickly
Hiring Incentives to Restore Employment Act ("HIRE Act")
Signed into law 3/19/10 Payroll Tax Holiday:
Employers exempt from paying SS payroll tax• Up to taxable wage of $106,800
Employees must be hired after 2/3/10 and before 1/1/11
• Up to taxable wage of $106,800Applies to wages paid from March 18, 2010
through 2010
Hiring Incentives to Restore Employment Act ("HIRE Act")
Tax CreditsFor employees retained for at least one full year. Employers can claim a credit for "retained
workers" Credit calculation:
• The lesser of $1,000 or 6.2 percent of the wages paid to the employee for the year on their 2011 income tax returns.
Wages during the last 26 weeks of employment > at least 80% of wages during the first 26 weeks.
Hiring Incentives to Restore Employment Act ("HIRE Act")
For both holiday and credits, employees must be “qualified”Unemployed or working part-time (less than
40 hours a week) for at least the past 60 days;
Not a family member or other relative of the employer;
Fills either a new position or a position that was vacated voluntarily or for cause.
Hiring Incentives to Restore Employment Act ("HIRE Act")
Small Business ExpensingSection 179 of the IRS Tax Code Can deduct the full purchase price of financed
or leased equipment placed into service in 2010Maximum from $125,000 to $250,000 through
2010. Employer and employee must complete new
form W-11Guidance and Form on IRS website
Immigration Schumer-Graham bill
Graham – tabled until 2012 – focused on climate change bill
OtherLeader Reid wants to tackle “this year”Working with Sen. Menendez
Timing: Will start in Senate - JudiciaryMore likely June than JulyMost likely 2012
Employee Free Choice Act (“Card Check”)
3/27/10 – President Obama recess appointment of Craig Becker to NLRBAssociate General Counsel for AFL-CIO2/9/10 Senate vote – nomination rejected
Concerns raised about administering Card Check w/o bill’s passageBinding arbitration and secret ballot cannot be
imposed administratively
Building Depreciation American Jobs and Closing Tax Loopholes Act
One-year extension of 15-year depreciation schedule (from 39 ½ years) likely included
Applies to: leasehold improvements, restaurant improvements and new construction and retail improvements.
Current extension expired 12/31/09Issue: costly – need “pay fors” – Chairmen
Baucus/Levin looking for income sources Permanent Extension – Meek/Tiberi bill
Recent push to increase co-sponsors
Cap and Trade - “American Clean Energy and Security Act”
Provisions: Limits greenhouse gases through declining cap
on allowable emissions• Must be down 17% from 2005 levels by 2020• Must be down 80% by 2050
Companies must obtain a permit for every ton of C02 emissions
• Permits are tradable• # of permits decreases every year → increased
energy prices
Cap and Trade Legislation Impact
Increase in gas, oil, electricity Decrease in consumption Loss of millions of jobs Jobs shipped overseas
Status: 6/26/09: Passed House - 219-212
• Blue Dog Coalition concerned of cost – 30 voted against/20 in favor
Senate considering (Sen. Boxer – sponsor) • More of a priority before Reid’s announcement to focus on
immigration
20102010CFA DAY FORUMCFA DAY FORUM
20102010CFA DAY FORUMCFA DAY FORUM
SAVE THE DATE!SAVE THE DATE!
July 15-17, 2010July 15-17, 2010Gaylord NationalGaylord NationalWashington, DCWashington, DC
July 15-17, 2010July 15-17, 2010Gaylord NationalGaylord NationalWashington, DCWashington, DC
2010 CFA Day Forum Basics2010 CFA Day Forum Basics
Date:Date:• July 15-17, 2010
Location:Location:• Gaylord National- Washington, DC
Schedule of Events:Schedule of Events:• Thursday, July 15, 2010
Educational Session on Legislative IssuesKeynote speaker George Will Cocktail ReceptionExhibit Hall
• Friday, July 16, 2010 BreakfastHill VisitsGeneral Session Gala Dinner Event with guest speaker Sam Donaldson
• Saturday, July 17, 2010Depart
Registration Fee:Registration Fee:• Franchisees: $1,000/Guests: $300• Includes registration, materials, meals and receptions, two nights at the
Gaylord – register at www.thecfainc.com/event.html
To Leverage the collective strengths of Franchisee
Associations for the benefit of the Franchisee Community
Mission Statement:Mission Statement: