Navigating the ACA: Navigating the ACA: What What impact will Healthcare Reform have impact will Healthcare Reform have

on your restaurant in 2014?on your restaurant in 2014?

Todays PresentationTodays Presentation

Moderator: Ryan Gromfin – The Restaurant BOSSModerator: Ryan Gromfin – The Restaurant BOSS

Presenter: Ryan Bays – District Manager with Proliant Presenter: Ryan Bays – District Manager with Proliant Inc.Inc.

GoalsGoals

1.1.Basic UnderstandingBasic Understanding

2.2.ImplementationImplementation

3.3.Save MoneySave Money

Am I affected?Am I affected?

•If you have 50 or more FTE employees you will be considered a If you have 50 or more FTE employees you will be considered a ““Large Large EmployerEmployer”” and be subject to new benefits requirements under the ACA. and be subject to new benefits requirements under the ACA.

•If you have more than one location under common ownership you may If you have more than one location under common ownership you may be subject to aggregation rules and be subject to the be subject to aggregation rules and be subject to the ““Large EmployerLarge Employer”” requirements if you have more than 50 FTE employees. Work with your requirements if you have more than 50 FTE employees. Work with your accounting professional to find out if you will be required to aggregate.accounting professional to find out if you will be required to aggregate.

How do I know how many FTE employees I have?How do I know how many FTE employees I have?

How much is this going to cost me?How much is this going to cost me?

Is it less expensive to pay the penalties than it is to Is it less expensive to pay the penalties than it is to provide insurance? provide insurance?

Insurance CostsInsurance Costs1.1.Each business will have to work with their insurance provider to find a Each business will have to work with their insurance provider to find a plan that best suits their individual needs.plan that best suits their individual needs.

PenaltiesPenalties1.1.No Coverage No Coverage = $2,000 per FTE employee who elects to get coverage = $2,000 per FTE employee who elects to get coverage from an exchange. The first 30 are excluded from the calculation.from an exchange. The first 30 are excluded from the calculation.

2.2.Unaffordable Coverage Unaffordable Coverage = $3,000 per FTE receiving federal subsidy. = $3,000 per FTE receiving federal subsidy. Plan cannot exceed 9.5% of the employees W-2 wages.Plan cannot exceed 9.5% of the employees W-2 wages.

How do I track this?How do I track this?

1.1.Measurement Period Measurement Period - - You will need to establish a period of You will need to establish a period of time that you will track your Part Time employees hours to measure time that you will track your Part Time employees hours to measure their eligibility. This period of time can be from 3 to 12 months.their eligibility. This period of time can be from 3 to 12 months.

2.2.Administrative Period Administrative Period - - After youAfter you’’ve moved through your ve moved through your measurement period and the employees status has been determined measurement period and the employees status has been determined the administrative period will be the time you notify and enroll eligible the administrative period will be the time you notify and enroll eligible employees. Cannot exceed 90 days.employees. Cannot exceed 90 days.

3.3.Stability PeriodStability Period - - The status determined during the The status determined during the measurement period will remain the same during this period even if the measurement period will remain the same during this period even if the employees hours increase or decrease. employees hours increase or decrease.

How have you done this in the How have you done this in the past?past?

The people side of businessThe people side of business

Multi-stateMulti-state50 locations50 locations(3,000 + (3,000 + employeeemployee’’ss)

Multi-stateMulti-state200 + locations200 + locations(4,000 + employee(4,000 + employee’’ss)

Multi-stateMulti-state50 + locations50 + locations(1,200 + (1,200 + employeeemployee’’ss)

TexasTexas10 + locations10 + locations(3,500+ (3,500+ employeeemployee’’s)s)

GeorgiaGeorgia3 + locations3 + locations(150 + employee(150 + employee’’ss)

Multi-stateMulti-state30 + locations30 + locations(2,500 + employee(2,500 + employee’’ss)

MichiganMichigan20 + locations20 + locations(500 + (500 + employeeemployee’’ss)

GeorgiaGeorgia10 + locations10 + locations(500 + employee(500 + employee’’ss)

AlabamaAlabama8 + locations8 + locations(400 + (400 + employeeemployee’’ss)

GeorgiaGeorgia10 + locations10 + locations(1,100 + (1,100 + employeeemployee’’ss)

32 States32 States2000 + locations2000 + locations(65,000 + (65,000 + employeeemployee’’ss)

RestaurantRestaurant Specific Payroll

The people side of The people side of business.business.

Proliant has developed a healthcare reform tracking Proliant has developed a healthcare reform tracking program to help you determine the benefit eligibility of program to help you determine the benefit eligibility of

your variable-hour employees.your variable-hour employees.

Our web-based module provides the following:Our web-based module provides the following:

Tracking of average hours relative to employer specific measurement, admin and Tracking of average hours relative to employer specific measurement, admin and stability periodsstability periods

Email notifications to management when employees approach your defined Email notifications to management when employees approach your defined hourly thresholdshourly thresholds

A projection tool for determining schedule budget and strategyA projection tool for determining schedule budget and strategy Online enrollment for qualifying / eligible employees Online enrollment for qualifying / eligible employees Automatically calculates maximum employee insurance deduction using the Automatically calculates maximum employee insurance deduction using the

““safe harborsafe harbor”” method method Cost projections for health insurance expense budgetingCost projections for health insurance expense budgeting Accounts for complicated rehire rules, FMLA, jury duty and military service leaveAccounts for complicated rehire rules, FMLA, jury duty and military service leave

In ConclusionIn Conclusion