The Affordable Care Act presents three hurdles for pizzerias in 2016

Starting in January, some pizzerias will be required to offer health insurance coverage to at least 95% of their fulltime employees.



 

Q: What do I need to know about the Affordable Care Act in 2016?

 

A: Starting January 1, 2016, the Affordable Care Act (ACA) will offer three important hurdles for pizzeria restaurant owners if you have at least 50 full-time workers (defined as someone who works at least 30 hours per week). First, starting in 2016, you will be required by law to offer coverage to at least 95% of your full-time employees. You will have to pay an excise tax if you don’t meet this requirement and if at least one of your full-time employees receives a premium tax credit when purchasing coverage through one of the government exchanges.

Secondly, you’ll need to meet the February 1 deadline for furnishing Form 1095-C to full-time employees. This form describes what health insurance coverage was made available to the employee. These forms must also be filed with the IRS; failure to file them can result in fines of $500 for each form that wasn’t submitted. To make sure you don’t incur these penalties, work with your accountant to address all common law employee issues and identify all full-time employees for each month of the past tax year.

Finally, you’ll need to manage your exposure to the “Cadillac tax,” a 40% excise tax on employer-sponsored health coverage that provides high-cost benefits ($10,200 for individual coverage and $27,500 for self and spouse or family coverage).

If you’re required to provide health coverage to your employees, I encourage you to discuss ACA rules with your accountant or healthcare provider soon. If you have multiple units under common ownership, keep in mind that the government also takes into account “full-time equivalents”—that is, two or more part-time employees whose hours add up to a full-time load. For example, two workers who each log 15 hours a week would make up one full-time equivalent (2 part-time employees x 15 hours = 30 hours, which is equivalent to one full-time employee). So you may be surprised to find out that you have to comply with ADA requirements when you didn’t think they applied to you. 

 

Edit Module

Tell us what you think at or email.

Edit Module
Edit ModuleShow Tags
Edit ModuleShow Tags

Related Articles

Recipe of the Month: Roasted Cauliflower and Prosciutto Pizza

Polly-O crafts a flavorful treat with this pie featuring roasted cauliflower, prosciutto, garlic and Parmesan

Pizza Without Borders - Competition Heats Up in the Eastern Bloc

As more pizza competitions and associations pop up in Russia, Bulgaria and Poland, the quality of pizza and prestige of the pizzaiolo continues to rise.

The Chef's Corner: Scott Wiener Q&A

PMQ test chef Brian Hernandez discusses the ins and outs of Scott Wiener's pizza tours, his experience with the pizza industry, and what's next for the pizza-crazed entrepreneur.

From the Editor - A New Year and a New Look For PMQ

This month we focus on the explosive growth of Artichoke Basille and roll out a new look for the magazine!

Product Spotlight: January-February 2018

Dough trays, tomato strips, yeast, menus, ovens and more.

Extra! Extra! Read all about the Pizza Press, a unique fast-casual chain in Southern California

At the Pizza Press, pizza makers are the “editors” and customers get to “publish” the pie of their choice.

Take a hike: How to cope with a higher minimum wage

A pizzeria owner in Washington state offers a four-pronged strategy for staying profitable in an era of rising labor costs.

10 tips for adding a take-and-bake option

Tom “The Dough Doctor” Lehmann walks you through the steps for modifying your dough formula and procedure.

All ‘Choked Up: How a couple of East Village pizza guys became Food Network stars

Artichoke Basille’s has boomed from a shoebox-size Manhattan underdog to a 12-store media magnet—and now sets its sights on franchising.

Get off to a successful start in 2018 with a social media calendar

Social media success hinges on knowing what you’re going to post and studying the data to improve your content every day
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit Module
Edit Module
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit Module
Edit ModuleShow Tags
Edit ModuleShow Tags