http://www.canadafreepress.com/index.php/article/51020
http://www.digitaljournal.com/article/336677
http://www.foxnews.com/politics/2012/11 … d-liberal/
Cry me a river
“he added that the cost to Papa John would be $5 million to $8 million a year”
Cry me a river: Papa John’s reported gross revenue of 1.2 billion for 2011. 5-8 million is a rounding error that amounts to about half of one percent… not the kind of thing you change your employee scheduling model over. You figure out how to save that amount somewhere else or you increase the price of pizza by a nickle.
Take an indy store that does 500K per year: Would you change your employee scheduling model over a change that was going to cost you $2500? Sure you figure out how to deal with it and whether you need to take it into account in your pricing, but you do not cut full time employees back to part time over it.
The price of cheese moves more than that in a typical month. This is political posturing plain and simple.
I agree Steve.
Stupid move from another rich guy. WHY bring this up? WHY invite/divert attention to how you treat/care for employees over your PRODUCT? Absolutely nothing to gain and everything to lose over his comments.
Business is business, private is private. Keep them separate.
I read that if your total number of employees is over 50 but your FULL TIME (30+ hours weekly) is not that the remainder of those employee hours will be pooled together. Does anyone know if that is true?
As it stands I have 31 FT with a total of 75 employees. If that above statement is true then I have 45. I am barely making enough money to cover my debt service and other normal bills and can barely keep up paying my health insurance right now. I have 1 employee covered on my plan as well and I pay 100% of it. At this point, with ObamaCare on the horizon it restricts me from growing my sales.
I also read that if 1 FT employee who is qualified for the government funded plans (Under $28,000 yearly) gets a plan then the employer will be fined if they are someone in my situation of over 50 total employees, again I don’t know if that is true either.
Either way the only way I see myself surving this is to sell one of the shops.
Adding 5 cents to every pizza might help an independant who is already at $20 for a pizza but the price of my pizza will have to triple. I know I should charge more but being connected to a chain of idiots I am forced to stay close to them.
While the # of employees (50) is listed, its important to remember,
- It goes by average salary of full-time employees (similar to how workmans comp goes by your annual payroll paid and not by the total of workers) and,
- For most small operations, the tax rebates ‘nearly’ offset the cost.
- The exchange is where ‘all’ of us will see a reduced cost and affordability of insurance.
Of course, this applies to businesses operating legally and following laws and regulations. All of the illegal operations will continue as normal, not contributing to the tax base, which costs the rest of us more.
Are all three of your stores under the same corporation? If so, separate them. My stores are separate, with separate staffs, delivery areas, bank accounts, FEIN and sales tax numbers numbers ect. Can’t see any reason to keep them together. No reason to have the liability of one weighing on the other.
I do get big breaks on my insurance coverages and my employees work in all stores (some never do but many). Might be too late to seperate them. They do have seperate bank accounts and such…FEIN and SCorp same though.
But I also read that even if I had 3 seperate since I am the common and they are same dba it lumps me back together anyway…again unconfirmed.
I admittedly haven’t read the health care law, but I don’t think this could be the case. A corporation is it’s own legal entity - you are merely a shareholder and employee.
- Determine your number of full-time equivalents. Basically total payroll hours for one week divided by 30.
- If the result of the calculation is <25, you’re a small employer and get tax credits for providing health insurance. Between 25 and 50, you’re in no man’s land - no incentives but no penalties. >50 means you’re a large employer.
- Large employers have to provide actual full-time employees with health insurance. You only pay a penalty for every actual full-timer over 30 on staff you refuse to provide with health insurance. So, 31 guys on salary = 30 free passes and just 1 penalty.
- Large employers don’t have to provide anything to part timers. That’s what Papa was suggesting, just make everybody part time and then avoid any outlays for insurance or penalties.
Please note: Most of what I’ve written is really simplified and the reality is crushingly confusing. I’m trying to hire a H.R. professional to help me sort it all out.
Maybe PMQ could do an article?
I just hold all my gross sales out to the government and tell them to take whatever they think they are entitled to. 
Seriously though, the law is so complicated it’s absurd. It’s one thing to incur a tax to insure the uninsured. It’s another to make us go through pages of calculus to determine how much we should pay to insure the uninsured.
I’m in a grouchy mood because I just got notice that we are being “audited” by Division of Unemployment (random audit apparently). Obamacare will be just one more reason for government officials to randomly come in and inspect my books to make sure I’m paying my fair share. I find it hard not to be disgusted by a government employee who hasn’t created a single job nor risked a single dime of his money coming into my shop in and telling me that I may not have paid my fair share. I wretch that I need to spend additional hours and money (on accountants and/or attorneys) to prove that I HAVE paid my fair share. How about this, Mr. Auditor - I HAVE at risk hundreds of thousands in my business. I HAVE created 30 jobs in my community from thin air. I HAVE spilled my sweat and blood in my restaurant. I HAVE paid a substantial amount in taxes that pay your salary. I know, the auditor is just doing his job and it’s not his fault but it’s hard not to think it…rant over now. resume your pizza making
Having been audited TWICE within the past 8 years by the DOL for no other reason than existing, I feel your outrage. The second one really chaffed me as I was in the process of “downsizing”, closing one of my two stores as the local economy continued to go south.
(Regardless of the “jobless recovery” touted by those in Washington D.C., my sales levels have not returned to the pre-2007 levels.)
ObamaCare is 2700 pages of unfunded mandates crafted by elected political whores to create more bureaucratic jobs for government regulators. It has not, does not, and will not reduce health insurance costs, and therefore represents a potentially open ended new cost to employers.
The magic employee number of “50” will eventually be revised downward as will the definition of “full-time employee”, as small employers who currently waive compliance will eventually be ensnared by the legislation.
I’m a bit incredulous that any small business owner cannot see the the expansion of federal government power within the private sector economy as a negative, but history reminds that this is the normal course for a nation on a trajectory such as ours.
I imagine at some point it will trickle down to all employers having to provide coverage. I have talked to accountants and business owners about the new policies and nobody understands them, not even the people writing them.
As far as Papa John, he would do well to keep his mouth shut. One thing I’ve learned is not to discuss religion or politics with customers. Keep your opinions to yourself and nod. But I am not a millionaire, so what do I know.
Dale,
I would recommend splitting up your stores into separate corporations/entities/dba’s. Not just for Obamacare purposes. Just to protect each store from the others. It gets more difficult to do since you are already established. But would probably be a wise long term decision. Just my opinion, I am by no means an expert, I just make pizzas. Seek the advice of a tax professional to make the best decision for you, blah blah, blah