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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.

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Presentation on theme: "Government Relations Report. Health Care Signed into law 3/30 Important dates for franchisees: 2014: Employer requirements begin 3/1/13: Notification."— Presentation transcript:

1 Government Relations Report

2 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)

3 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

4 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

5 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 credit Not to exceed $2,000 x FTE’s (above) Offers coverage but FTE’s contribution is 8-9% of income Employer must offer voucher to avoid penalties

6 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

7 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

8 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

9 Credit Card Interchange Fees – Financial Services 5/13: Amendment passes 5/20: Bill passes out of Senate Next steps: Conference committee Note: Interchange is NOT in House version and strong opposition to keep it out! Stay tuned for an Action Alert!

10 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

11 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 pass Senate looking for post-health care “win” prior to elections No vote scheduled – may come up quickly

12 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 $106,800 Applies to wages paid from March 18, 2010 through 2010

13 Hiring Incentives to Restore Employment Act ("HIRE Act") Tax Credits For 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.

14 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.

15 Hiring Incentives to Restore Employment Act ("HIRE Act") Small Business Expensing Section 179 of the IRS Tax Code Can deduct the full purchase price of financed or leased equipment placed into service in 2010 Maximum from $125,000 to $250,000 through 2010. Employer and employee must complete new form W-11 Guidance and Form on IRS website

16 Immigration Schumer-Graham bill Graham – tabled until 2012 – focused on climate change bill Other Leader Reid wants to tackle “this year” Working with Sen. Menendez Timing: Will start in Senate - Judiciary More likely June than July Most likely 2012

17 Employee Free Choice Act (“Card Check”) 3/27/10 – President Obama recess appointment of Craig Becker to NLRB Associate General Counsel for AFL-CIO 2/9/10 Senate vote – nomination rejected Concerns raised about administering Card Check w/o bill’s passage Binding arbitration and secret ballot cannot be imposed administratively

18 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 12/31/09 Issue: costly – need “pay fors” – Chairmen Baucus/Levin looking for income sources Permanent Extension – Meek/Tiberi bill Recent push to increase co-sponsors

19 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

20 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

21 2010 CFA DAY FORUM SAVE THE DATE! July 15-17, 2010 Gaylord National Washington, DC

22 2010 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 Issues Keynote speaker George Will Cocktail Reception Exhibit Hall Friday, July 16, 2010 Breakfast Hill Visits General Session Gala Dinner Event with guest speaker Sam Donaldson Saturday, July 17, 2010 Depart Registration Fee: Registration Fee: Franchisees: $1,000/Guests: $300 Includes registration, materials, meals and receptions, two nights at the Gaylord – register at

23 To Leverage the collective strengths of Franchisee Associations for the benefit of the Franchisee Community Mission Statement:

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