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View Diary: Wendy's franchise cutting worker hours to avoid Obamacare, despite backlash to other chains (149 comments)

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  •  I didn't read it this way (1+ / 0-)
    Recommended by:
    Involuntary Exile
    However, the rules for large businesses have no penalty for not providing health insurance for part time employees.
    According to the Kaiser flowchart cited by True North above, those companies with 50 or more FTE's have to offer health insurance to all their employees that covers more than 60% of the premium and keeps the premium under 9.5% of the employee's salary. If they don't, then they are assessed penalties on only the full-time employees.

    "Mediocrity cannot know excellence." -- Sherlock Holmes

    by La Gitane on Tue Jan 08, 2013 at 07:48:50 PM PST

    [ Parent ]

    •  It is more interesting then that... (1+ / 0-)
      Recommended by:
      La Gitane

      because the FTE calc is set at basically 30 hours per week.

      If that business at any point allows there part time employees to go over 30 hours, then that employee will add more then 1.0 to the FTE count, If this happens across enough employees that company could end up paying a higher ta premium then if all of its employees where simply full time.

      Be the case that the employer can't fill all of their new part time positions to pickup the slack, or simply increased demand over a short period of time.

      Basically, these businesses are playing chicken with the tax man, a poor bet given the probability of an employee exceeding the FTE 30 hour per week thresh hold.

      Even more so consider how many businesses already play games with part timers that work full time hours. Name me a retailer that doesn't work a part timer for 30-36hours for 13weeks then 1 week at 18 hours then repeat(mind you personal experience from Utah, results may vary).

      Employers are going to have to balance their decision on this carefully, are the added recruitment costs, ability to universally keep workers under 30 hours, and business ability to handle common rise and fall of demand(such as the holidays). Worth the maybe savings given they still rack up FTE's on part timers, and the 30 hour cutoff creating the very real potential of paying even higher taxes.

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