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The Day After

As a business owner with 28 employees, I've had much to contemplate after the passage of the "historic" bill. I cannot possibly provide health insurance to my workers as my payroll exceeds 55 percent of total revenue. I consulted with my crew leaders and have given them the choice of a 12 percent pay cut or we must eventually release three men. Our $1.2 million payroll translates to around $100,000 in annual penalties added to our tax burden because we cannot afford to provide health insurance. We have decided to proceed with firing three men and will do so within the next few months. We will take shortcuts on the service for our customers to somehow make up for their loss. Our business will survive this setback. I'm sure the three men who will lose their jobs as a direct result of this bill will be comforted in knowing they now have health insurance.


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Comments (59)

You ought to make a trip th... (Below threshold)

You ought to make a trip through the parking lot and see if there are any cars with Obama bumper-stickers and start with them. You wanted change? You got it.

There was a story over the ... (Below threshold)

There was a story over the weekend that the marginal cost to Caterpillar under Oh, Bama! Care will be $100 million. I wonder how many people they'll be forced to lay off?

Fortunately, this will be partly offset by the 16,000 new jobs just created at the IRS over the weekend. Jobs required to make certain that we all pay "our fair share" of the costs of our new health care system. Plus all the new jobs required to build the office space to house them, the new computer systems that will be required to handle the record keeping, the additional field agents required to provide the workplace enforcement, and the additional lawyers necessary to prosecute violators.

And that's just the IRS. There are 150 other agencies that will have to be beefed up or created from scratch.

Jobs jobs jobs. Mmmm mmmm mmmm!

Let's all sing along! C'mon, kids!

Happy days are here again
The skies above are clear again
So let's sing a song of cheer again
Happy days are here again...

(repeat chorus until projectile vomiting occurs)

Thanks for relating the con... (Below threshold)
James H:

Thanks for relating the consequences of this bill calmly and factually.

The law of unintended conse... (Below threshold)

The law of unintended consequences starts to rear its interesting head.

That's one problem with any legislation - there are always consequences which, even with the best of intentions, the writers of the legislation didn't foree. When the writers actually care about the consequences, they bi-partisanly work to try to minimize the side effects.

But with this ghastly mess of a bill, the end result was predetermined and the legislation wrtitten in a single-minded attempt to get it. No thought for side effects, no attempt to anticipate what might go wrong and mitigate foreseeable damage - and what we have is what we have. A frothing mess of half-baked ideas and patches - it IS a political sausage made with floor sweepings and cigarette butts and unidentifiable bits of crap.

You say you were thinking you were going to get a nice standing prime rib roast and all the trimmings, with a nice big slice of fancy cake? And that's what you've been paying for and told you were going to get all these years? Too damn bad. The kitchen staff thinks different and you'll take what they've made up for you. You'll pay what they charge you - and it's going to be a lot more than you originally thought - and you will eat up every single unidentified stinking morsel, and you WILL like it.

#1I like that way yo... (Below threshold)

I like that way you think. The fools that voted for this socialist president and his tribe should be the people who get hurt the first and the most.

Working at a hosptial for years I have seen all kinds of people get the best of care. The "poor" get excellent care, and the thing of it, is that they don't give a damn whether the bill is paid or not. The just walk in and demand this and that, because that's what their gov't tells them they are entitled to.

Yes indeed reform was needed but not this mess, but that again it was never about reform or health or care..just about more power to the federal government.

It is sad, but we all knew ... (Below threshold)

It is sad, but we all knew this kind of thing was going to happen and had better get ready for a lot more of it.

Not everyone lives in the methane breathing world of Washington where Obamanomics and magic math equate to eutopia.

We are on the precipice of real trouble here and the grinning harpies in Washington don't care.

Oh, please. The bill isn't... (Below threshold)

Oh, please. The bill isn't even *signed* yet. It doesn't go into law for *years*.

Man the f**k up and stop bawling.

#7, the tax part of the bil... (Below threshold)

#7, the tax part of the bill goes into effect immediately, so it is going to hurt businesses right now.

Well, it IS signed now, san... (Below threshold)

Well, it IS signed now, sanssoucy. It was being signed when you wrote your post.

And the taxes go into effect right away. It's the "benefits" that won't go into effect for years.

The bill to "man up" the IRS is due right away, and it's $10 billion.

Pile of crap.You d... (Below threshold)

Pile of crap.

You don't pay your employees health insurance? Then have them set up DBA's or S Corps, then they will be vendors of yours and they can be responsible for their own deductions and their own insurance.

Beyond that, penalties for you wouldn't take effect until 2014 so stop complaining.

Mr. P,As a CPA, I ... (Below threshold)

Mr. P,

As a CPA, I like to point out that you should not make comments concerning things of which you know not. The IRS does not care about the whole "DBA" thing. They have specific tests they use to determine whether someone is an employee or a vendor. If they should be treated as employees and are not, then Mr. Orfi would be subject to the FICA portion and the Fed Tax of their pay with penalties.

So to avoid having to pay a... (Below threshold)

So to avoid having to pay a fine starting in 2014, which you won't have to pay anyway as only businesses with 50 employees or more are required to provide insurance, on a bill that isn't even signed yet, you're going to fire three employees?

What a horrible businessman and boss you are. How long have been operating? A week?

Just follow Barry's lead an... (Below threshold)

Just follow Barry's lead and screw everybody and everything to get what you want. After all, Its all for one and one for all.

Why Social Security and Med... (Below threshold)

Why Social Security and Medicare couldn't be repealed soon after they were passed ...
1) every working American would pay in and get a promise benefits in the future ...
so the people who were going to get the benefits paid into the system ...

Compare that to ObamaCare ...

The only people who could possibly benefit are the 30 million "uninsured", not every working American ...

Of the 30 million 25% DON'T WANT TO BUY INSURANCE ...
25% are already eligible for Medicaid but haven't signed up ... they are too irresponsible to sign up and certainly won't bother to vote either way based on any repeal attempts ...

So in ObamaCare we have about 15 million people who "may" benefit vs 135 million working people and their families who pay for that benefit ...

Watch it SER! SteveP KNOWS... (Below threshold)

Watch it SER! SteveP KNOWS EVERYTHING about EVERYTHING. 99.9% of it is bullshit, but that never stops him.

Oh, and mantis is just as b... (Below threshold)

Oh, and mantis is just as bad. Never occurs to him that businesses IN BUSINESS are always planning way ahead. Unlike liberals who live in the moment and keep getting reality shoved up their rear ends.

Hey mantis! SS is now paying out MORE than it's taking in. Some planning, huh?

Hey Stevie, mantis! Take a... (Below threshold)

Hey Stevie, mantis! Take a look, this just in:

(AP) "Sales of existing homes fell for a third straight month in February, pushing sales down to the lowest level since last July."

See what happens when you pass legislation and the 'law of unintended consequences' rears it's ugly head? See why SUCCESSFUL businesses PLAN AHEAD?

Hey! Great idea! This would be a really good time TO UP THE MINIMUM WAGE!

Never occurs to him that... (Below threshold)

Never occurs to him that businesses IN BUSINESS are always planning way ahead. Unlike liberals who live in the moment and keep getting reality shoved up their rear ends.

So firing employees for no reason whatsoever is planning ahead? Maybe the way you would run a business...

GarandFan, Alan is planning... (Below threshold)

GarandFan, Alan is planning way ahead for something that will not effect his business of 28 employees, at all. Ever.

First of all, the law does not require him to provide health insurance for his employees.

If he had 50 employees, in 2014 he could be subject to fines if he does not provide insurance and one of his employees gets government subsidized health care (which they would qualify for if they make less than $43,000).

Is Alan planning to add an additional 22 employees in the next four years?

What's also interesting is that if Alan fires 3 employees now, in order to avoid costs and fees he is not now and may never actually be subject to, he will have 25 employees which would qualify his business for government subsidies to provide health care for his employees if his average annual wages do not exceed $50,000.

By 2014, he will also be able to buy insurance through his state's small business insurance exchange which will allow him to pool together with other businesses if he so chooses. But he will not be fined if he doesn't do so.

When you get down to it, the first and only person Alan should fire is whoever advised him about the impact of the health care bill on his business.

It's obvious few of you kno... (Below threshold)

It's obvious few of you know the ins and outs of running a business (and you are right, SER, you cannot use DBA's for an unlimited length of time in any particular manner you want. You can, however, use those setup as Corps. through an EIN since they are simply a vendor).

And lets put it this way, if you ARE using these people continuously and not making enough of a profit for your books to balance, you're really doing something wrong. My employees get HIP - same insurance I have through my company. Everyone's happy with it. I know. We all talk. Does it cost me per month? Sure. But it's cost me more in the past three years since the insurance companies doubled their costs (without the interference of health reform). But, nonetheless, it's the proper way to run a company if you give two shits about the people who commit their daily lives to you. And I still make a profit (not as much as two years ago, but that's the economy, not us).

Don't want to pay insurance for any of your people? Well, get everyone as freelancers from temp agencies. Let the temp agencies pay for their insurance - many of them have plans for that. Then the temp agency is your vendor.

All you have to do is pay 12-14% more to the agency for the privilege of hiring those employees. Comes out less than health insurance for each individual.

Or, just factor in the Health Insurance cost in their salaries.

Or don't do any of that and sit around whining.

"...you are right, SER, you... (Below threshold)

"...you are right, SER, you cannot use DBA's for an unlimited length of time in any particular manner you want."

So your first answer, as usual was bullshit. So why would anyone consider your second any better?

So your first answe... (Below threshold)

So your first answer, as usual was bullshit. So why would anyone consider your second any better?

First of all, proposing a DBA as an option is perfectly logical. I've long since stopped using them because there is a limit on how much they can make before you have to consider them employee material.

Nonetheless, for project work it's fine. And an option. And the reason I said it, along with Corps.

So, firstly, not bullshit. Just not clarified. And obviously you have nothing of value to add to the conversation at all since your response is pretty lame.

Fact is, the diarist story is bullshit. Or he's just the worst businessman in history. Either way, it's no surprise he's a republican.

So your first answer, as... (Below threshold)

So your first answer, as usual was bullshit.

GarandFan, does it trouble you at all, that Alan is planning to fire three of his employees in the next few months because his understanding of the health care reform bill is entirely wrong?

Mr. P,You'll excus... (Below threshold)

Mr. P,

You'll excuse me if I don't believe that you own a company. You may, but I find it hard to believe (my guess would be government worker, but that is an oxymoron).

I have not read the 3,000 pages of the new law. However, if it does include the provision to require insurance companies to cover pre-existing conditions, health insurance premiums will go up. I understand that President Obama said that they would not go up, but I do not believe him. Therefore, if a business man is under the impression that health insurance premiums will go up, he will start planning for that now.

"Does it trouble you....bec... (Below threshold)

"Does it trouble you....because his understanding of the health care reform bill is entirely wrong?"

My brother has been facing the possibility of a layoff for the last year. I'm not without sympathy for anyone in that position. You on the other hand, believe that it's best that businesses just continue on as if nothing will happen. Business decisions are based on the understanding of what the known rules / tradeoffs / and consequences WILL BE. Our resident expert ON EVERYTHING - given his past posts - has his opinion. Alan has an opinion from someone else.

A smart business man will hope for the best but also have plans for the worse AND plan accordingly. Just look at GM and Chrysler.

fafaroo:Have you see... (Below threshold)

Have you seen the statement from Caterpillar and what they BELIEVE will be their future costs under ObamaCare.

Let's ask the resident expert Stevie.

HEY STEVIE! Is Caterpillar 'over-reacting'. Perhaps they'll pay you for your keen business acumen.

Therefore, if a business... (Below threshold)

Therefore, if a business man is under the impression that health insurance premiums will go up, he will start planning for that now.

SER, Alan is not saying his health insurance costs are going to go up since he doesn't currently provide his employees with insurance.

He's saying that he can afford neither insurance for his employees or the "penalties" levied for failing provide them insurance.

The problem is that the law does not require him to provide insurance for his employees so he will not be penalized for failing to provide it.

This sentence:

Our $1.2 million payroll translates to around $100,000 in annual penalties added to our tax burden because we cannot afford to provide health insurance.
Doesn't even make any sense because the only business related penalties apply to companies with 50 or more employees, don;'t kick in until 2014 and the penalties are per employee, not a percentage of payroll.

Nothing Alan writes in this post has any connection to law as enacted.

Stevie:"So, firstl... (Below threshold)


"So, firstly, not bullshit. Just not clarified."

I'm glad, like your Obamassiah, you made that 'perfectly clear'. You are still full of bullshit. Alan talks about "employees", you offer advice revolving around people hired "for projects".

As SER has pointed out, your 'advice' has proven to be wanting. AS USUAL.

With all due respect, SER, ... (Below threshold)

With all due respect, SER, insurance premiums ALWAYS go up. I don't expect that to change in the short term.

The difference here is that I don't live with the same degree of doom and gloom as you people do.

As long as my accountant tells me I'm not losing money, I adjust. I run an marketing agency, which is certainly a bit different than a manufacturing firm but, nonetheless, a legitimate company. And I don't handle the day to day nitty gritty of finding out out how the tax laws have changed year to year. That's his job - and, I'm guessing, yours.

But if it makes you feel better to de-legitimize me by saying I don't know what I'm talking about or don't actually have a company, be my guest. It will continue to fit in with the same kind of tactics you guys always fall into: If you can't present a real debate, tar the opponent as a distraction.

Have you seen the statem... (Below threshold)

Have you seen the statement from Caterpillar and what they BELIEVE will be their future costs under ObamaCare.

How exactly does that change the fact that Alan's post is entirely wrong?

Unless, of course, Caterpillar is a small business with 28 employees. Is it?

I'm SHOCKED at you fafaroo!... (Below threshold)

I'm SHOCKED at you fafaroo! The Obamassiah and Nancy were SCREAMING that 45,000 people DIE yearly without health insurance. That's 123 PEOPLE! Don't you understand? This bill doesn't start kicking in until 2014! 165,000 PEOPLE ARE GOING TO DIE BEFORE THIS BILL KICKS IN!

Where is your compassion? DO YOU NOT CARE?

You on the other hand, b... (Below threshold)

You on the other hand, believe that it's best that businesses just continue on as if nothing will happen.

But nothing will happen. That's the point.

With 28 employees, Alan is not required by the law to provide any of his employees with health care so he cannot and will not be penalized for not providing it.

Alan's opinion of how this bill may/will effect him is one hundred percent, demonstrably wrong.

In other words, he is planning to put three people out of work because he hasn't bothered to understand the law. Simple as that.

fafaroo; Stevie?PE... (Below threshold)

fafaroo; Stevie?


Why didn't ObamaCare KICK IN TODAY? 123 people WILL DIE TODAY! Their 10 year cost projection on this bill is that over $120 BILLION will be saved. The bill will REDUCE THE DEFICIT! The taxes start now! Why can't the BENEFITS start now?


Why can't the BENEFITS s... (Below threshold)

Why can't the BENEFITS start now?

For your edification, Garand, here's a list of changes, including benefits, that kick in the first year of the bill:

Within the first year

• Young adults will be able stay on their parents' insurance until their 27th birthday.

• Seniors will get a $250 rebate to help fill the "doughnut hole" in Medicare prescription drug coverage, which falls between the $2,700 initial limit and when catastrophic coverage kicks in at $6,154.

• Insurers will be barred from imposing exclusions on children with pre-existing conditions. Pools will cover those with pre-existing health conditions until health care coverage exchanges are operational.

• Insurers will not be able to rescind policies to avoid paying medical bills when a person becomes ill.

• Lifetime limits on benefits and restrictive annual limits will be prohibited.

• New plans must provide coverage for preventive services without co-pays. All plans must comply by 2018.

• A temporary reinsurance program will help offset costs of coverage for companies that provide early retiree health benefits for those ages 55 to 64.

• New plans will be required to implement an appeals process for coverage determinations and claims.

• Adoption tax credit and assistance exclusion will increase by $1,000. The bill makes the credit refundable and extends it through 2011.

• A 10 percent tax will be imposed on amounts paid for indoor tanning services on or after July 1.

• Businesses with fewer than 50 employees will get tax credits covering 35 percent of their health care premiums, increasing to 50 percent by 2014.


There is nothing that takes effects in the first year or ever, that would force Alan to fire three employees in "the next few months."

Alan's post makes no sense whatsoever.

But where is your sympathy?... (Below threshold)

But where is your sympathy? PEOPLE ARE DYING!
The Obamassiah said so! Nancy said so! These people aren't covered! THEY'RE GOING TO DIE! People with 'pre-existing conditions', those without health care insurance.


GarandFan,Your dia... (Below threshold)


Your diaper's soiled. Have mommy change you and go take a nap.

That's brilliant, Garand. J... (Below threshold)

That's brilliant, Garand. Just brilliant.

MYTH: When the bill passes,... (Below threshold)

MYTH: When the bill passes, people will begin receiving benefits under this bill immediately

Fact: Most provisions in this bill, such as an end to the ban on pre-existing conditions for adults, do not take effect until 2014.

Six months from the date of passage, children could not be excluded from coverage due to pre-existing conditions, though insurance companies could charge more to cover them. Children would also be allowed to stay on their parents' plans until age 26. There will be an elimination of lifetime coverage limits, a high risk pool for those who have been uninsured for more than 6 months, and community health centers will start receiving money.


Garand, the fact that most ... (Below threshold)

Garand, the fact that most benefits are phased in over the first several years after the law's passage does not change the fact that Alan will be firing three people in "the next few months" for no reason whatsoever other than his own inability to try to understand how the law will effect his company.

I'm wondering if you can at least acknowledge this fact before your next tirade.

fafaroo those people will b... (Below threshold)

fafaroo those people will be ALIVE!

123 people WILL DIE TODAY! Don't you care?

SteveP, Faf,When do ... (Below threshold)

SteveP, Faf,
When do the tax increases and the penalties for not having insurance kick in? Many don't kick in until 2013, once the current President won't need to worry about re-election or 2018. But which start in 2010? Wouldn't that be the prime influence factor in hire/fire decisions re: Obamacare? Not what "we get", but what "we pay".

When do the tax increase... (Below threshold)

When do the tax increases and the penalties for not having insurance kick in?


Mr. P,You complain... (Below threshold)

Mr. P,

You complained (whined?):

"It will continue to fit in with the same kind of tactics you guys always fall into: If you can't present a real debate, tar the opponent as a distraction."

But earlier you said:

"Fact is, the diarist story is bullshit. Or he's just the worst businessman in history."

It seems as though you don't mind taring an opponent as a distraction.

Wouldn't that be the pri... (Below threshold)

Wouldn't that be the prime influence factor in hire/fire decisions re: Obamacare? Not what "we get", but what "we pay".

Yes, SCSIwuzzy. That's what we were talking about before Garand decided to change the subject.

Alan is claiming that he will soon owe $100,000 "in annual penalties" on top of his current tax burden because he "cannot afford to provide health insurance." And so, in the next few months, he will have to fire three people.

There is absolutely nothing in the law that requires Alan to provide health insurance for his 28 employees in 2010, 2013, 2018 or ever.

So Alan could not possibly be facing $100,000 in annual penalties because he "cannot afford to provide health insurance" to his employees.

Now granted, Alan may be talking about the end of Medicare Part D subsidies which begins in 2013 but must be accounted for by employers this year for tax purposes.

That is not a penalty for failing to provide employees health insurance, it's a reduction to the employers tax deduction based on "the extent the employer's drug expenses are reimbursed under the Medicare Part D retiree drug subsidy (RDS) program."

This is the provision of the bill that Caterpillar claims will cost it upwards of $100 million.

But Alan is saying that he does not currently provide any of his employees with health insurance. So how many retirees do you think he covers prescription drug benefits for?

The point being is that Alan seems extremely confused and rather than figure out how the bill really effects him, he's just decided to fire three people.

123 people WILL DIE TODA... (Below threshold)

123 people WILL DIE TODAY! Don't you care?

Garand, I'm in favor of this law. You're not.

Do I wish, however, impractical, that all of its benefits were available today? Sure.

But that's not really practical and its not really a serious criticism of the law.

It certainly provides zero cover to Alan who's going to fire three people for non-existent reasons.

But..but....but....fafaroo,... (Below threshold)

But..but....but....fafaroo, BARRY SAID that my health insurance premiums would drop BY UP TO $2500 per year. I called my insurance company today and asked when I could expect to pay less, because BARRY SIGNED the bill.

I was told, and I'm quoting: "DON'T HOLD YOUR BREATH!"

Now are you telling me, fafaroo, that Barry was LYING? That maybe 45,000 weren't dying each year? That maybe this bill will cost more that 1 TRILLION dollars? After all, fafaroo, ALL THESE CLAIMS WERE MADE. I heard and read all the sob stories. I looked at the math.


"Do I wish, however, imprac... (Below threshold)

"Do I wish, however, impractical, that all of its benefits were available today? Sure.
But that's not really practical and its not really a serious criticism of the law."

fafaroo, I'm sorry but you are one hard-hearted bastard! "It's not really practical". "It's not a serious criticism of the law." Those people are DYING!!

OR was it all bullshit to begin with?

Sorry, but Mr. Orfi needs t... (Below threshold)
Caesar Augustus:

Sorry, but Mr. Orfi needs to take a major chill pill.

Companies with less than 50 full-time employees are not affected whatsoever by the coverage mandate.

Yes, this law is an abomination, but if small business owners go nuts firing people, on the mistaken grounds that they can't afford an insurance mandate that doesn't even apply to them, then we're truly FUBAR as a country and as an economy.

OR was it all bullshit t... (Below threshold)

OR was it all bullshit to begin with?

Garand, Alan has announced that he's going to fire three people for entirely fallacious reasons.

As per Caesar Augustus, you don't have to support the law at all to recognize that Alan is dangerously ignorant of its actual effect.

Can you acknowledge that firing people based on unfounded fears is pretty effed up?

I despise this bill and eve... (Below threshold)
samuraipundit Author Profile Page:

I despise this bill and everything about the way it was passed.

But I gotta agree with fafaroo (OUCH) - from what I have read about the bill, this post is full of errors. Alan's reasoning, as stated, makes no sense.

Lets get the bill repealed for the piece of garbage that it is, not for strawman arguments.

no matter if your business ... (Below threshold)
kepa poalima:

no matter if your business is going to be effected or not, fire all employees who voted for this obamanation, and hire unemployed people who didn't

Now that they have explaine... (Below threshold)

Now that they have explained WHY the IRS will be policing this bill, and what part of the Constitution, according to their interpretation of it, they will be using...it is quite evident that this is an attempt to overcome the part of the Constitution that preserves states' rights. All is lost once they have jettisoned that little impediment.

Our business entails landsc... (Below threshold)
Alan Orfi:

Our business entails landscape maintenance and is seasonal. We far exceed a total of 50 workers during the summertime. However, only 28 are year-round employees. It is the opinion of our accountant that we will be subject to the requirement of providing health insurance or face these fines. The only means of negating these penalties are either raising prices or cutting back on labor. In this economic climate, raising prices is simply not prudent.

And just so we have the who... (Below threshold)

And just so we have the whole picture, Alan, your accountant is aware of the 120-day exemption for seasonal employees and the 90-waiting period employers are allowed before they have to offer employees insurance?

Also, Alan, I'm curious. Yo... (Below threshold)

Also, Alan, I'm curious. You posted in October that you had to lay off two people because of the economy, reducing your staff to 26 with a payroll of $900,000 and an average salary of $42,000.

Five months later you report a staff of 28 and a payroll of $1.2 million.

So sometime in the last five months you re-hired two people and your payroll has jumped to $300,000.

I would never tell you how to run your business but you just added $300,000 to your payroll in this shitty economy.


Perhaps you should hire a c... (Below threshold)

Perhaps you should hire a competent accountant, or at least one who will understand the details of regulations before he makes recommendations.

Oh wait, I forgot. Competence is not a virtue in wingnuttia. I'm glad my boss is a liberal.

Yes, our company has enjoye... (Below threshold)
Alan Orfi:

Yes, our company has enjoyed great success throughout this challenging economy... mostly at the expense of others. Smaller companies cannot handle significant declines in business and we bought out a few struggling competitors.

We fully understand (OK, somewhat understand) the delays in the implementation of the true horrors of this legislation. But shrewd business people respond to such threats as soon as possible. That is why we have seen businesses laying off people in droves. Heck, we saw massive layoffs in anticipation of the Obama presidency. I have little doubt the end result of this health care takeover bill will be rising unemployment throughout the country.

Yes, our company has enj... (Below threshold)

Yes, our company has enjoyed great success throughout this challenging economy...

Congratulations. And what a weird and wild ride the last five months must have been.

In October of 2009 you were forced to lay off two employees, bringing your totals to 26 employees, a payroll of $900,000 and annual revenue of $2.5 million.

Just five months later you hired two people bringing you to 28 employees and a total payroll of $1.2 million which you say is over 55 percent of your payroll.

Since $1.2 million is not 55 percent of $2.5 million, it's just barely over half, we have to assume that in the last five months your total revenues have shrunk by at least $300,000.

Which suggests that, as a shrewd business person, your response to a $300,000 decline in revenues was to increase your payroll $300,000 by adding two people at $150,000 each. Or maybe you hired two people and gave everyone in the company an almost $10k+ raise.

Now, after this crazy five month ride, you claim you have to fire three people in the next few months because you can't afford health care penalties that won't kick in until 2014.

But Alan, you're a shrewd business person with four years to plan.

Are you saying that you and your accountant can't figure out a way to adjust your seasonal hiring in order to exploit both the 120 day exemption and the 90 day waiting period which are both part of the law, so that you can avoid these penalties altogether?

Isn't that really what a a shrewd business person would do? Because otherwise, as you say, you will have to take short cuts in your customer service which could damage your reputation in the long term.

Cuz it sounds like you and your accountant just crunched the numbers on a napkin, threw up your hands, yelled "Damn you Obama," and started handing out pink slips.

I am ready and willing to concede that I know absolutely nothing about your business except what you've revealed in this post and the October post. But I can do basic math and I have read a lot about the health care law.

And Alan, nothing you've written in this post adds up.

Landscape maintenance enter... (Below threshold)
Alan Orfi:

Landscape maintenance enterprises such as our's have payrolls that wax and wane dramatically across the seasons. Significant profits are realized during seasons of low payroll while we hang on for dear life during the summer. Thus, it may seem peculiar that such an enterprise can expand while lowering payroll or vice versa. We compare year-to-year data to assess our growth.






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