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  #1  
Old 01-01-2014, 02:28 PM
SawDoc SawDoc is offline
Senior Zero Turn Mower
 
Join Date: Dec 2006
Location: Eastern Ky.
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Default Obamacare

Have any of you fellow dealers figured out how to deal with the new health care regulations coming into play? Information we are getting shows up to forty new taxes built in, and that both employers and employees will be fined for non-compliance. We really don't want to cut our one tech back to 30 hrs. because we need to keep his income at the present level. How can you pay someone above their hourly wage without incurring penalties? Put him on salary, pay bonuses, etc.? I would like to just shut the doors and go home, but I need this income, also.
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  #2  
Old 01-02-2014, 10:14 AM
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bgsengine bgsengine is offline
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Location: Roulette, PA
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Look at other industry and how they do it - for example, certain hair salon chains do not hire stylists. They rent booths to stylists and let them have their own customers, do things their way, and they charge what they want, salon collects off the top of that , and sells retail "parts" (supplies, shampoo, etc) at a trade discount to stylists , along with full retail sales to the customer.

One could imagine doing the same if you have a tech with the desire to have more control, handle their own taxes, etc. (1099's) and have their own customer base. your "booth rental" covers overhead, etc. - they work their own hours, deal with their own comebacks, and do their own scheduling.

you still get the store traffic from customers, you got the parts sales (which for most should represent the actual profit made) and new equipment sales.

Techs have more freedom of course, but, if they work slow or can't get the job done, there's probably someone else around who'd be happy to step up and take the work they can't or won't do.. and again all within the shop, under a "bay rental"

Any thoughts on that?
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  #3  
Old 01-02-2014, 01:38 PM
SawDoc SawDoc is offline
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Join Date: Dec 2006
Location: Eastern Ky.
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Might work for larger shops where the techs are wrench turners only, but in smaller businesses like ours, there are many more duties included in his 40 hrs. Other than the peak season, we don't have enough work coming in to keep a tech busy full time, so he does other things. And maybe I'm too hard to suit, but after 17 years in business, the guy we have now is the first one that is capable of working to my standards. And he isn't even a local, but moved here from out of state.
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  #4  
Old 01-02-2014, 02:37 PM
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Prattslawn Prattslawn is offline
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Aren't small business with less than 40 people exempt from providing?
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  #5  
Old 01-02-2014, 03:00 PM
GW_Y&G GW_Y&G is offline
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Location: Wisconsin
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It's actually 50 full-time employees, but given how Obamacare has unfolded thus far, that could change 20 times between now and June.
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  #6  
Old 01-04-2014, 12:12 PM
SawDoc SawDoc is offline
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Just heard from our accountant, it is 50 or more employees. However, our tech will be faced with the fines if he doesn't get his own coverage. Our accountant (and other insurance reps) have told us that he can get subsidies for this as long as his income doesn't exceed 400% of the poverty level guidelines. His gross for 2013 was actually a little more than mine, so I won't feel too sorry for him, especially considering that he only works 5 days a week and I put in 6 and sometimes 7. If people only knew how much you give up sometimes just to be the boss
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  #7  
Old 01-04-2014, 09:11 PM
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MowerGIRL MowerGIRL is offline
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Location: West Monroe Louisiana
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Quote:
Originally Posted by SawDoc View Post
Just heard from our accountant, it is 50 or more employees. However, our tech will be faced with the fines if he doesn't get his own coverage. Our accountant (and other insurance reps) have told us that he can get subsidies for this as long as his income doesn't exceed 400% of the poverty level guidelines. His gross for 2013 was actually a little more than mine, so I won't feel too sorry for him, especially considering that he only works 5 days a week and I put in 6 and sometimes 7. If people only knew how much you give up sometimes just to be the boss
When you consider the hours we put in, we make less! You are right though, they don't have any idea how much we give up! We gave out guys a bonus, gift cards and paid time off from Christmas Eve through New Years!
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  #8  
Old 01-07-2014, 06:32 PM
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grouch grouch is offline
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Be very careful at declaring someone an independent contractor. The IRS has some very strict rules about that, and the consequences of them deciding they're an employee can be serious in the extreme.
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