ED Publications

March 2014

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42 March 2014 Club Bulletin www.EDpublications.com Your penalty as a large employer for not providing health care is calculated in two ways. If you don't offer health care to anyone, it is $2,000 per full-time equivalent employee, less the first 30 full-time employees. If you offer health care to some, the penalty is the lesser of $3,000 times the number of full-time employees who don't take your coverage, but actually go to the insurance exchange and receive a subsidized coverage, or $2,000 per full-time employees, minus 30. The second option is to ensure that you will never pay a higher penalty for providing health care to some workers. Limbeck explained that the October 1st planning deadline is necessary, as it will take time to calculate your full-time equivalent employees and whether your club falls into the category of large businesses under Obamacare, and to decide then whether to ramp up to cover your people or pay the penalties. Your computation must end no sooner than 90 days before January 1, 2015, hence the October 1st date. Limbeck noted that you need an objective standard for the number of hours a category of employee will work; you can't arbitrarily pick and choose. For example, a more skilled worker, such as a bartender, might be full-time, while a security person with little training will be part-time. Limbeck noted that in many cases, you can shrink your force of full-time employees, but there are a lot of factors that go into accomplishing that. Limbeck cautioned operators to not be foolish and fail to plan for Obamacare. "You need to start working on it now; you need to monitor these hours, especially if you are a borderline large business," he said. Panel Moderator Micheal Ocello, President of VCG/PT's Showclubs and a multi-unit club operator with considerable experience on Obamacare, cautioned that first learning about Affordable Care requirements "is like drinking from a fire hydrant. If you haven't spoken with somebody who is an expert in this field, you need to do so. The stakes are very high. This is not a joke. This can cost you your livelihood. And it also raises the stakes on how you handle your entertainers. Because if you're not doing it right and you lose, you could lose big." This article summarizes extremely complex legal and tax issues and is provided for general information purposes only and is not to be construed as legal, business or tax preparation advice in any way, shape or form. Club operators and others are strongly encouraged to consult their tax professionals and attorneys for specific advice on how these issues will affect their businesses and what measures to take. Larry Kaplan and ED Publications do not guarantee the accuracy of this information. Randy Limbeck is an attorney and a shareholder at the Omaha, Nebraska office of Jackson Lewis, P.C. Email Randy at limbeckr@jacksonlewis.com or call him at (402) 827-4266. Larry Kaplan is Legal Correspondent for Exotic Dancer Club Bulletin, Executive Director of the ACE of Michigan adult nightclub state business association and a consultant in the sales and purchase of adult nightclubs and adult stores. Contact Larry at (313) 815-3311 or e-mail kaplanclubsales@ gmail.com. continued from page 40

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