MAY 2015

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Page 92 of 120

90 DAYSPA | MAY 2015 Use FreeInfo #48 the deadline isn't met. So, the best advice is to plan to meet the dead- line. If it doesn't materi- alize, so be it. Let's look a little closer at the employer mandate, which states: Em ployers must offer affordable health insur- ance that provides mini- mum value to their full- time employees. Now, any legal principle you encounter is meaning- less without a defi nition of its terms, so what is an "affordable" health care plan? The law says coverage is considered "affordable" if the em- ployee contribution to the premium does not exceed 9.5% of the employee's household income. But how can employers know the total household incomes of their em- ployees? The answer is, they really can't know for certain, and the draft- ers of the Affordable Care Act un- derstood that. Therefore, they added what are called "safe harbor" provi- sions: formulas that, when used by employers, will meet the requirement of affordability under the Act. Here are some examples: • The Healthcare coverage costs the employee 9.5% of W-2 wages (minus 401(k) or cafeteria plan deductions). • The coverage costs the employee 9.5% of monthly wages, which is the employee's hourly rate times 130 hours per month. • The coverage costs the employee 9.5% of the Federal Poverty Level for a single individual. (For a single individual the 2014 Federal Poverty Level was $11,670. So if someone makes $12,000 per year, that person isn't considered poor. No comment.) The employer mandate also refers to health coverage of "minimum value", which it defi nes as a plan that pays 60% or more of the cost of covered services (with deductibles, copays and coinsurance considered). The Department of Health and Hu- man Services has prepared a spread- sheet to assist in calculating "mini- mum value". (See "HHS Calculator" on page 92.) One more term in the defi nition of employer mandate needs explain- ing, and that's "full-time employee". Employees are considered full-time if they work 30 or more hours per week. (This must have been calculated by the same folks who brought a person out of poverty at $12,000 per year. The observant among you probably knew something was up when we calcu- lated the 9.5% affordability factor by using 130 hours per month.) DOES THIS MEAN YOU? Now that you're pulling your hair out, let's answer the fundamental question, which is: does this stuff ap- ply to you? For employers of 1-49 employees (or full-time equivalents), the employer mandate does not apply. So many spa owners won't have The ACA mandate states that employers must offer affordable health insurance to their full-time employees. © GETTY IMAGES MANAGEMENT WORKSHOP $57.00 MAY/JUNE PROMOTIONS PRICES ARE VALID MAY 1 THROUGH JUNE 30, 2015. NAILS SPA WAX *within contiguous United States; $99 to Canada. See website for shipping details. $358.80 NEW! CND SHELLAC XPRESS5 TOP COAT Cuticle Eliminator Original Callus Eliminator Brazilian Wax Kit Buy One Titanium Double Spring Nipper, Get One Titanium Ingrown Nail File FREE! COLOR PAINTS 12-CT. SWEET ALMOND CUTICLE OIL 2.5 OZ. Layer & Blend Color Over Silver to Create Ultra-Luminous Nail Art! BRIGHTS 12-CT. DISPLAY $3.95 $6.95 .5 OZ. $2.95 2 OZ. $14.95 $44.95 $14.95 18 OZ. 8 OZ. Nail Tek II Intensive Therapy OR Foundation II Ridge Filling Base Coat $6.95 $56.95 $19.95 $56.95 SAVE $14.95 $5.50 VALUE $ Fruity Treats Lotions BUY 2 GET 1 FREE! $99.95 $149.95 VALUE S A VE 48% S A VE $2 $ 1 49 . 9 S A VE 5 0 % LED Tunnel Lamp PNI25 CLASSIC E-FILE #1 Seller! C S A VE 5 0 % $99.95 $149.95 VALUE $399 Buy One CND Shellac Rainbow Kit, Get One NEW CND LED Lamp FREE! ¬6!,5%¬s¬3!6%¬ .25 oz. $15.95 .5 oz. $24.95 NE W ! Buy One Marine Mineral Bath 73 oz., Get One 18 oz. FREE! Buy One Pedi Jet Non-Foaming Foot Soak 14.1 oz., Get One Pedi Septic Foot Spray 8 oz. FREE! OPI Studio LED Light Buy 24 Select OPI GelColors, Get One OPI Studio LED Light FREE! NE W ! SAVE $199.95 Show Off Summer Vamp with Sophistication and Daring! .5 OZ. .5 OZ. $ 6 BUY 1 GET 1 FREE! Lifetime Guaranteed! B O P di J t $ 7 .95 SAVE SAVE $ 1 0

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