October 25, 2011 // Franchising.com // WASHINGTON - The International Franchise Association today launched new online resources, including calculators to determine the cost of the employer mandate and eligibility for the small business health care tax credit, to help the nation's 825,000 franchise businesses determine the impact of regulations included in the Patient Protection & Affordable Care Act of 2010 (PPACA).
"There is a great deal of uncertainty by franchise small business owners with respect to the costs and requirements in the health care law," said IFA President & CEO Steve Caldeira. "These new resources will allow IFA members and the public to better understand the potential cost-ramifications of the employer mandate penalties and potential eligibility for tax credits before these regulations go into effect in 2014."
In 2014, the employer mandate of PPACA will take effect, and will have a significant impact on many franchise businesses. A recent IFA study prepared by the Hudson Institute showed that 3.2 million jobs at franchise businesses would be put at risk by the mandate. The employer mandate requires businesses with a combination of 50 or more full-time equivalent employees to provide qualified health care coverage or be subject to a penalty of $2,000 per full-time employee (after the first 30 employees) . The calculator will help franchise business owners determine if the employer mandate applies to their business, and the potential penalties a business could face.
Also in 2014, certain small businesses that provide health care coverage will be eligible for a Small Business Health Care Tax Credit of up to 50 percent of what the business paid for health insurance premiums. The credit phases out for businesses whose average wage is more than $25,000 or that have more than ten full-time equivalent employees. This calculator will help franchise business owners determine if they are eligible for a tax credit and estimate the amount of credit.
The tools are both available in the IFA's new health care resource center.
"IFA will continue to lobby for repeal of the health care law's regulations that place onerous regulatory costs and requirements on small businesses, including the employer mandate provision," said Caldeira. "However, given the President has indicated he will veto any effort to fully repeal the health care law, IFA will also work to educate its members as the government begins to implement these new regulations in the coming years."
The International Franchise Association is the world's oldest and largest organization representing franchising worldwide. Celebrating over 50 years of excellence, education and advocacy, IFA works through its government relations, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the franchise industry, which supports nearly 18 million jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.
Alisa Harrison, 202-628-8000
Matthew Haller, 202-662-0770