#stephenbienko

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Small Businesses Say ACA’s Aggregation Rules Unfair

Originally posted on wsj.com - http://blogs.wsj.com/washwire/2013/12/04/small-businesses-say-acas-aggregation-rules-unfair/?dsk=y

Donna Baker of Adrian, Mich., owns an accounting firm, payroll company and retail store. Her husband, Kim, is the sixth generation owner of a dairy farm.

While the four businesses are separate entities, they count as one employer under the health-care law due to a technicality — Mrs. Baker is a minority stakeholder in the 1,800-acre property that her husband’s farm sits on, plus she helps out with some of the farm’s bookkeeping.

As a result, the Bakers are subject to aggregation rules in the U.S. tax code, which means they would be required to offer health-insurance benefits to their combined full-time staff — if it reaches 50 employees — starting in 2015, or pay a penalty.

“I’m just an investor in the farm,” says Mrs. Baker, who testified on the issue during a Congressional hearing Wednesday before the House Small Business Committee. “I am not running the day-to-day operations.”

The Bakers collectively employ just shy of 50 full-time workers, the threshold in which employers must provide health-care benefits to comply with the law. If they expand their headcounts in the coming year to 50 or more people, they would be subject to the mandate.

But while Mrs. Baker, 51 years old, says her payroll business is young and growing, she is hesitant to hire more staff. She says she’s already struggling to afford health benefits for existing employees at two of her firms and that having to start covering her husband’s eight full-time farm workers and future full-time recruits to any of their businesses would be too costly.

Wednesday’s hearing also included testimony from business experts such as Debbie Walker, an accountant for more than 35 years in Washington, D.C. She says it’s likely that many entrepreneurs won’t realize they are subject to the law’s aggregation rules – which apply mainly to entrepreneurs who own assets or have financial stakes in multiple businesses – until it’s too late. “The rules are just too complicated,” she says.

Here’s an example: Ms. Walker says if a mother buys a stake in her son’s dog-grooming business and then she invests in her neighbor’s hair salon, the two entities could be considered one employer under the law, depending on the amount she invested in each. It wouldn’t matter if the mother isn’t involved in running either entity, or even if the two entrepreneurs have nothing else in common but her investment, she adds.

“The calculations are complex and many small businesses will be caught unaware,” said Todd McCracken, president and CEO of the National Small Business Association, via email. Other business groups, including the U.S. Chamber of Commerce, International Franchise Association and the National Federation of Independent Business, have also expressed concern over how the aggregation rules apply the health law.

A spokeswoman for the U.S. Treasury declined to comment. During the hearing, Congresswoman Nydia M. Velázquez (D., N.Y.) said the aggregation rules are meant to prevent businesses from “skirting the law.”

One set of small-business owners most likely to be affected are franchisees such asStephen Bienko of Allamuchy, N.J.

The 36-year-old entrepreneur owns four junk-hauling and moving franchises along the East Coast, each with about 25 employees. But come 2015, the businesses will be considered one employer under the health law, making them all subject to the employer mandate.

Mr. Bienko, who currently offers health benefits to only staffers who work more than 40 hours a week, says he estimates it will cost him an extra $125,000 a year, if all those newly eligible for employer coverage by law elect to take it.

The employer mandate defines full-time employees as those who work more than 30 hours a week, so Mr. Bienko says he’s planning to cut his staff’s hours in the year ahead, as well as hire only part-timers going forward, to try and avoid going over the threshold. Still, he’s not sure the strategy will work because the law, when calculating the 50 employee threshold, counts two employees whose combined weekly hours exceed 30 as a full-time equivalent.

“We’re just so darn scared,” says the College Hunks Hauling Junk franchisee. “I don’t have a team of analysts who can assist in calculating my company’s health-care costs. I’m afraid of making a clerical error that could have catastrophic financial implications.”

David Barr, the owner of 23 Kentucky Fried Chicken franchises in Georgia and Alabama, is also concerned about how the law’s aggregation rules will affect his bottom line. All together, the businesses employ 450 workers and only 32 salaried managers are currently eligible for company health benefits.

Mr. Barr says he expects to have cover about 80 more employees in order to comply with the law in 2015, which could cost an extra $50,000 to $350,000 in annual premiums, depending on how many of those staffers sign up for coverage.

He says he’ll have no choice but to absorb the cost and may need to raise deductibles for his employees in order to reduce premiums, and adds that he thinks the new expense will put his businesses at a competitive disadvantage. “The law applies to me,” says Mr. Barr, “but not the guy across the street who has just one restaurant.”

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Here are some photos of College Hunks Hauling Junk and Moving North Jersey and Nashville owner, Stephen Bienko at Congress last week with the folks from the International Franchise Association.

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Health Law Raises Issues for Small Businesses

Small-business owners like me spent the summer sweating about the potential impact of policies from Washington. At the top of the list is the implementation of the Affordable Care Act .

While the employer mandate was delayed for one year, there are still serious concerns for small-business owners like me; in particular the requirement for employers with at least 50 full-time employees to offer health insurance to those working at least 30 hours a week — as opposed to the traditional 40-hour workweek. The impact of this future rule causes employers like me not only to limit the number of full-time employees hired but also to cut current employees’ hours to avoid the 30-hour threshold.

The reality is that if it isn’t reformed in some common-sense ways, the health care law will impose burdensome and costly mandates on small businesses, which create two-thirds of all new private-sector jobs.

I own and operate two franchised business units in two states and have 57 full-time employees. I bought my first franchise in 2010. I’m proud of my business: It creates products and provides services that my community loves. As a franchise small-business owner, both my livelihood and my ability to provide for my employees is directly linked to the health of the economy and federal policies made by Congress. While well-intentioned, the health care law poses a serious threat to my businesses’ ability to provide quality jobs for people in my community.

We see this playing out in our current economic recovery with the increase in part-time workers. Since March, we’ve added 791,000 part-time jobs compared to just 187,000 full-time jobs. Hiring a lot of part-time workers might seem like good news to some cheerleading a weak jobs recovery, but it’s bad news for those employees who were or would like to be full-time employees.

Thankfully, some in Congress are advancing smart, pragmatic bills to relieve small businesses like mine from these overly burdensome regulations, like the redefinition of a “full-time employee” from 40 hours a week to 30 hours a week in the ACA. I applaud Rep. Diane Black for her support of this legislation.

Franchise owners along with the International Franchise Association, of which I am a member, have been consistent advocates for such common-sense reforms since the law’s passage. Ultimately, successful small businesses like mine need tailwinds, not headwinds.

Growing small businesses should not be rewarded with ever-rising regulatory burdens. We need relief, and we need it now.

Stephen Bienko is the owner of College Hunks Hauling Junk and Moving. Reach Bienko atstephen.bienko@1800junkusa.com or on Twitter @stephenbienko.

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Conquering Your Move: Part 4 - Moving In

  By Stephen Bienko, Owner of College Hunks North Jersey

  In this final installment of the four-part "Conquering Your Move" series, Stephen explains how to properly handle the actual move-in day in order to keep yourself stress-free. And, in case you missed it, be sure to check out Part 1, Part 2 and Part 3!

Part 4: Moving In

If you’ve gone through the appropriate steps to allow yourself to have a stress free move then unpacking shouldn't be too difficult. But even though it’s the easier part of the move there are a few small points I wanted to make.

Assembling Furniture

Hopefully your couch and piano made it over in one piece. But most likely there are a few items that need to be reassembled. I suggest you take the time to set up your bed first. The last thing you’d want is to finish a long move and have to sleep on the floor. There’s no reason to let this happen.

If you find that you don't remember how to put things back together and the manual isn't available online, you can often have instructions sent to you from the manufacturer. Do a quick online search with the manufacturer and model name of your furniture and you’re bound to find instructions to assist with the assembly.

Clean That New Place

If you’re moving into a new home make sure you clean your furniture before arranging it. Start off fresh. If your new place is dirty get on your knees and do some scrubbing or call in a service for a few hundred dollars and have them do a deep clean. Again there is nothing like sleeping in some other persons dust bunnies.

Stop The Clutter Cycle... Use Your Closets

It's easy to clutter up your home when unpacking. It can become a little intimidating when you have to move it all around.

If you can manage, fill your closets first—even if it's only temporary.

Use the same principle I mentioned before. If you have not used it in nine months get rid of it. If you forgot you had it….get rid of it.

De-clutter and Recycle

When you're all done you'll have papers, boxes and other items left over. Getting rid of boxes can be as easy as a quick post on Craigslist. People buy anything on there and you can avoid throwing them out.

Remember, “Re-use what’s still good for the good of others.”

Before you even think about throwing something out search for you’re nearest junk removal company. There are many out there and they send people to your home to remove unwanted items. Some of them take great care of the items and do amazing things with them within the recycling community.

Again, like movers, not all junk companies are made alike. Like your move, keep focused, stay calm and carry on. If you have any questions I follow the bird on twitter: @stephenbienko. Let me know your thoughts or questions.

Thanks for enjoying our 4-part series! If you'd like to have a professional mover handle your move from start to finish, call the HUNKS today at 1-800-586-5872 or schedule your stress-free move online by clicking right here!