I'm very fortunate today to have with us a team from Ernst & Young, Dana Krieg and Tanner... Coulter? Coulter, that's what I get for not following my script. And I know what they're going to share with you today is going to be very helpful and insightful, as I've seen this presentation before. With the ACA becoming law, you know, we see new terminology surrounding counting employees, variable hour, payroll, accountability. And today we're here to provide you with insight into these new requirements and how your business needs to be prepared for and implemented them. So as I said, we have Tanner Coulter on my right, far right, who's managing human capital at Ernst & Young, Dana Krieg, Executive Director of Human Capital, which is an interesting title, but... Tanner is a member of Ernst & Young Human Capital Practice in the Dallas office, they're both in Dallas. Tanner is primarily focused on tax aspects of certain compensation and benefits matters. Tanner is a graduate of the Indiana University Mara School of Law and received his undergraduate degree from the Floyd University. In addition, Tanner is a member of the American Mara Association and Indiana State Mara Association. With Tanner, as I said, is Dana, who's Executive Director with Ernst & Young Practice in Dallas. Her primary focus is executive compensation and related projects such as short and long-term incentive plans. In addition, Dana has focused a significant amount of time over the past year educating employers on the impact of the Affordable Care Act. Dana has worked with clients in a variety of industries, including oil and gas, utilities, mining, retail, nonprofit manufacturing, and healthcare. So we have a lot of experience here, a lot of knowledge. I know that both Dana and Tanner said that as they go through the presentation, if you have questions, shout them out. Let's talk about it when it happens. We'll also leave a few minutes at the end if you have some additional questions you want to wrap up with. So without further ado, let me turn it over to Dana and Tanner. Great. Well, thanks for coming today out in the rain and everything. We're excited to be here and have the opportunity to speak to you guys. I think from the ACA presentations I've heard and the things that we've done, I think we take a little bit different perspective on ACA than a traditional HR consulting firm would or a law firm. What we've done is we have a group in D.C.R.E.Y. Washington Council and they've been tracking the Affordable Care Act since 2010 when it was implemented or passed. And so really they've been focused on not necessarily what do you need to do to your benefits plans to be compliant with this, but as an organization what do you need to do to operationalize this? This is a huge change and it's so much more than, you know, I need to cover dependent stage 26 now and I need to eliminate lifetime maximums and pre-existing conditions. It really is an organizational wide effort. And so what we did is we looked at it as a tax law because at the end of the day that's what it is. So we have our tax attorney here. You can talk about that. But it impacts IT, it impacts finance, it impacts HR, it impacts internal audit to an extent. It really is far-reaching in its implications. It's not just simply an HR issue. And it's not just simply let me change my benefits plans to be compliant. One second. So really what we are doing is going out to employers. We had a huge effort in January where, as Glenn said, I'm an executive comp person by background. But this is such a far-reaching effort that we actually had a huge training back at the first of the year when everybody agreed that this is going to be a reality now. This isn't going to change. And they really just trained all of us up, got us all up to speed on ACA and said, you know, let's go out and help clients because this is a lot bigger than I think most people realize. Of course, at the first of July, they did have the delay. So really the only thing that that's changing is that the penalties are going to be delayed a year. Everybody in America is still required to have healthcare coverage as of January 1st. Employers are still required to offer it or they won't pay a penalty this year, but they'll pay a penalty going forward a year from now. Medicaid expansion is still taking place and the biggest change, the exchanges are still opening October 1st. So there's a big employee communications effort that you guys are going to need to undertake so that you don't have employees going, hey, I think I'll go check out these exchanges and see what they have, you know, as opposed to just taking their own benefits and understanding what they currently have and not thinking that there's necessarily something better on the exchanges. You know, we've met with hundreds of employers over the past six months, six to eight months, and, you know, we've heard everything from, hey, well, I can go to the exchange to get healthcare for free, right? No, it's not free. Or, you know, I've heard the exchanges, it's going to be like $15,000 for an individual to get coverage. And there's a wide range of information out there. A lot of it is not accurate information. You know, a lot of this is still kind of a wait-and-see thing. But today we're going to kind of go through, from an EY perspective, what we think employers need to be thinking up to actually operationalize this, actually put this into action for your company. So, let's just skip ahead to page seven. So we do have this one-year transition period. And really what, in our perspective on it is, this is a good trial run. You have a year to kind of make sure you have the right processes, the right systems in place. You're communicating with employees. You're ready when these penalties and these filings are going to be required in 2015 to go. You're good. You're good to go. So really, you know, the delay is a good thing. We've seen a lot of employers who've said, oh, all right, good. Then I'm not thinking about it again for another year. But in our opinion, I think go ahead, take the steps necessary, start doing, you know, trials of stuff, figuring out where you need to get the data for the filings, understanding who's going to own certain processes. The exchange notification process is a big one. How is that going to work? Who's going to own it in your organization? How are you going to respond? Really kind of figuring all that out this year before it becomes a reality next year. Okay. So we kind of went over key dates. So the exchanges, again, that's a huge, huge, huge change. And this map basically shows you who is going to have state exchanges, who's going to have federal exchanges, and then who's going to have partner exchanges. So it's a combination of state and federal efforts. Texas, of course, is going to be a federally facilitated exchange. So the federal government will be running the exchange for the state of Texas. You know, really, again, we're already seeing the ads. I'm sure you guys are seeing the ads. You know, it's a market share game at this point. So we have 40 million uninsured Americans, and all of those insurance companies want their piece of them. So we're seeing ads in Dallas.  You're getting stuff in the mail. And your employees are getting all of this. And so it's really important to kind of get out ahead of that, because the mandatory communication doesn't have to go out until October 1st either.  They're affordable. You know, they meet the minimum value requirement. You know, you don't need to go to an exchange, really kind of helping them understand what they have versus what the exchange can provide. The other thing that's big that's happening this year is the Medicaid expansion. So they're actually expanding the definition for Medicaid who's eligible. Texas is one that is not expanding. You know, the Medicaid population is huge. There was a statistic and I'm sure I'm going to get this wrong. But hopefully Tanner can remember better than I did. But there of the percentage of the population that's eligible for Medicaid, it is a tiny, tiny percentage that actually takes it. And so I'm not going to throw a number out because I'm sure it'll be wrong. But it's a very small number.  Particularly, you know, in states where they're expanding it, even more people will be eligible. All right, I will turn it over to Tanner and he'll kind of go through kind of the act itself and some of the basics around it that you guys should be aware of. And I'm sure this is, a lot of this is going to be old hat for you. But please ask questions as we go. We're, you know, we're here to help you understand this and kind of understand our perspective on it too. So as Dana mentioned, as part of this law, what was implemented were a lot of requirements for employers. A lot of what I'm going to talk about today applies to large employers, which I will get into a little bit later of kind of what that entails. But there are also certain provisions for small employers as well. So maybe just a show of hands just so I know the audience of how many people here are from organizations that have 50 employees or less. Okay, so everybody else is from an organization that's a little bit bigger.  So I'll get into both.  As part of getting everyone to have health insurance, part of that is what they call the employer mandate. So most people get health insurance through their employer and so the government realizes that and has expanded certain provisions and coverage requirements for employers. So basically the general rule is that large employers may be subject to an excise tax if at least one of their full-time employees whose household income is between 100 and 400% of the federal poverty level receives a premium tax credit for exchange coverage and an employer either fails to offer coverage to their full-time employees and their dependents or they offer coverage to full-time employees and it doesn't meet the affordability or minimum value requirements. So it's kind of a two-pronged test and there's a couple of different taxes that apply and we'll get into kind of the federal poverty level and what the premium tax credit is but the gist of the law is basically the government realizes that certain people aren't going to be able to afford coverage and so if you make a certain amount of money they're going to help you out with the tax credit and so the employer provisions kind of tie to that aspect. So the first question and so as I mentioned here the basic rule applies to large employers so what is a large employer? As I mentioned it generally is any employer with 50 or more full-time equivalent employees and it's a little bit more technical than that it applies to all common law employers so you could potentially be employing certain independent contractors but if the IRS comes in and says actually under the common law standard it looks like this is an employee of yours then that would be considered an employee for purposes of this law so that's almost a separate and distinct issue that I think Dana mentioned we have another year to get ready for this that you want to start looking at independent contractors looking at policies and procedures who your people are you really want to have a good kind of thumb on your pulse of who your employees are for foreign companies if you have and I'm not sure if that applies here but if you have 50 full-time equivalent employees performing work in the US you are also subject to the law if they have US source income so if you're issuing W-2s to these individuals then you're going to be subject to determine kind of if you're a large employer so if you come from an organization and you're right on the cusp you say I think we've got 53 people I don't know if they're full-time, full-time equivalents so you basically need to start it's an hours counting exercise so a full-time employee for purposes of this law is someone who works 30 or more hours a week and let me just say from the front we have very detailed slides here we only have an hour so if you want the slides at the end of the day we can send them to you but I am probably going to gloss over some of the mechanical aspects of how to determine large employer status I mean this kind of gets into you're going to count the number of full-time employees you're going to calculate the number of full-time equivalents so that these are people that basically you aggregate the number of hours of individuals so you could have 100 part-time employees but if all of their hours add up to what is known as a full-time equivalent you could still potentially be subject to the large employer rules and I think actually this was one of the initial things in the law when it came out that people went oh full-time is now defined as 30 hours, not 40 hours and a lot of the companies we've talked to are like well we defined it as 35 or 38 or 36 but now you have those additional people that are going to get captured in that 30 hours they will not so I think what in my example that I was mentioning if you had 100 people that were potentially working less than 30 hours you could potentially have more than 50 full-time employees and be considered a large employer but because you actually don't have any full-time employees there'd be no corresponding coverage requirement but if you had one, if you had one guy over here that's working 40 hours you would have to offer coverage to him because you're a large employer does that make sense? that's right sure? potentially if those full-time equivalents and full-time employees added up and aggregated is greater than 50 and you would have to offer those under 30 hours? you would only have to offer it to your full-time employees that just determines how you're working yeah it just determines, it's almost a two-step process so it's a split it would be large am I a large employer or am I a small employer? yes I'm a large employer so now I'm subject to these rules and have to offer coverage to anybody over 30 you're a large employer and you don't want to pay for the benefit of 35 hours can you drop them? because I'm hearing people are being dropped 25 hours per week so that the employer doesn't have to pay insurance you can that's a strategy that is a strategy and we are seeing companies that are doing that and I mean again that goes to a business decision is that sustainable? it's an employee relations issue are your employees going to be able to live on 25 hours a week? there's a lot of considerations there there's no penalty or anything? no in all of the meetings we have I've only heard of one organization on the west coast it's a large retailer that said I'm cutting everybody back to 20 hours and I'm not offering benefits period that was their business decision and obviously it becomes a competitive issue too if I'm not going to get benefits am I going to work for you? but yeah it is a strategy are there going to be any tracking software systems for this? because they're just myself and HR and it's very time consuming when we start getting all these time sheets we have to calculate to see who else works for the hour absolutely there are I know a lot of probably the big payroll providers are offering these services I don't know about some of the mid tier and smaller tier providers but I know there are software programs out there that track and put yeah I know we have payroll people absolutely does that make sense? if you have overseas operations as well as we'll say here locally you have less than 50 overseas maybe another 50 on top of that it only counts if they are receiving US source income so if you issue those people a W-2 or if they're solely in France and they get French wages and don't have anything to do with the United States then no there'd be a lot of analysis that would go into whether or not they would be receiving US source income but that's the general answer I think it matters whether or not somebody is subject to US source income then they likely are not receiving a W-2 they're not getting US source income if you don't look at them you're fine all you have to do is offer and that coverage has to be affordable and meet the minimum value test if I could just ask you to ask questions if you could project a little bit we don't have a microphone there is an exception for seasonal employees so this applies to certain retailers or certain agricultural type companies if your workforce exceeds 50 full-time employees for a certain part of the year that's four months or less you can potentially not be considered a large employer so some retailers pick up their employees right around the holidays to account for the excess volume if it's only for four months or less you can exclude those employees to the extent they are truly seasonal employees and back them out and then do your count and that may save you from actually being a large employer and there's certain guidance that we're actually still waiting on with respect to what a seasonal worker is it's really the DOL said it's a reasonable good faith interpretation and as we go through this there are a lot of things that are still awaiting guidance things could still change one item of note in determining large employer this applies on a controlled group basis and so I'm not sure how many of you sponsor a qualified retirement plan a 401k or a pension these are the same rules that apply for your qualified retirement plan requirements that you have to cover everyone in your controlled group so if you have a subsidiary that's included in your count for employees so you have to look across your whole organization on a controlled group basis to determine whether or not you have 50 employees so you can't say well I've got 25 here but I've got two subsidiaries that each have 15 all three of us are small employers actually you have to aggregate it we have 25 employees total and we're a large employer so what is a full-time employee you'd think it'd be pretty apparent but the IRS always makes things hard so you have to actually there's a definition for that so it's anyone who on average has 30 hours per week per month or 130 hours over a calendar month and an hour of service not only includes an hour of service but it includes hours when you're not working vacation, leave, holiday jury duty military duty those types of things and I will probably keep harping back to this but it's very similar to your qualified plan rules a lot of the principles for this law kind of came out of qualified retirement plan so it's similar when you're counting hours for your qualified plans you have to include vacation you have to include jury duty in certain things like that you can actually calculate the hours for hourly employees you have to count hours there's no way around it you have to actually receive time sheets or track it using some sort of software and understand how many hours people are working for your non-hourly or your salaried employees there's three different ways you can do it you can have them submit time sheets as well which I don't think we see very often and actually count hours or you can use an equivalency method basically the equivalency there's a day's worked equivalency and a week's worked equivalency the day's worked is basically you have to credit someone 8 hours of service on any day that they have 1 hour of service so if I come in for an hour on Tuesday I might have to be credited 8 hours for that day the week's worked is very similar if I have 1 hour on Monday I'm going to get 40 hours for that week so it's a very similar type of equivalency because the IRS wants to make sure you're not understating hours and people are not erroneously being excluded again it's very similar to a qualified plan the DOL has equivalency rules that are actually more generous than this but it's a similar type of principle so there are certain safe harbors so and let me go back really quick basically the general rule on people who are classified to be full time they must be eligible for your health plan within 90 days so you can have a waiting period but it cannot be longer than 90 days I'm glad you asked that because you're keyed up my next conversation so in order to count hours how do you do that the Treasury has provided what they call a measurement and a stability period safe harbors so you can basically select a period of time in which you count the hours so that can be from 6 months up to a year prior and you basically look at the individual's hours over that period and if it comes out to more than 30 hours during that period then the individual is a full time employee as far as your specific question on whether you can use the 130 versus 30 hours per week I'm actually not sure about that we'll note that and see if I can track that down let's think about that so it would be 30 times I think the 130 is almost a safe harbor type of rule but I don't know specifically but I think when you get into the calculation yeah I don't know we'll have to look at that and so again the measurement period you can have between 3, 6, 9, 12 months and then you have if you use a measurement period of 6 months of counting hours you have to offer what they know what is known as a stability period this is to prevent people from your example right there hey I'm 30 hours this week now I'm not I'm in and out of the health plan nobody wants that so basically you have to offer at least as long as your measurement period was so if you had a measurement period of 6 months you're counting hours for 6 months and I'm over 30 hours the individual has to be allowed to be in the plan for the next 6 months at least the same amount of period of time as your measurement period if my measurement period is a year then I have to stability period is a year as well so they'll be in a year I think a lot of employees are choosing what they're used to you have an annual open enrollment so you can count hours around the fall have your open enrollment October November and say yep you are over 30 starting January 1 you're going to be eligible for the health plan through 1231 and then we'll do it all over again the next year so that is the general kind of full-time employee in counting and who needs to be included I'll talk a little bit about the small employer provisions the general kind of ideas that small employers are not subject to the same tax penalties that large employers are so if you do all this analysis you realize you're under 50 employees you're not going to be hit with an excise tax if you potentially don't offer coverage that's minimum value or you don't offer it to everybody there are certain provisions under the Affordable Care Act that you need to be aware of there is what they're calling exchange which is if you have between 50 and 100 employees you can actually go through a special exchange for small employers and offer your coverage through there so I think the government kind of realizes that this is a very large administrative burden for smaller companies and so they're kind of helping out a little bit by saying hey you can offer coverage through our exchange and we'll cover some of the admin the administrative items for you in offering that coverage there is a small employer tax credit if you're less than 25 and there's certain wage requirements so if your average wages are no more than 50,000 there's certain credits that you can apply for so I'm not going to get into excruciating detail on that but just know that there isn't a credit out there for certain small employers and in some of the other requirements so you still small employers cannot offer their coverage based on the health of employee population so that's one of the things that's kind of across the board on the Affordable Care Act and then essential health benefits so if you're in the small group or individual market you have to cover what they're calling essential health benefits part-time employees so as I mentioned earlier large employers are not required to offer coverage to part-time employees so if I work if I do my measurement period and I determine that I work on average less than 30 or 130 a month over that period then I'm not I'm not going to be offered coverage offered coverage by the employer and that's fine if you do decide to say hey we've always offered coverage to anybody that's 25 hours or more there are certain rules you can't kind of give them crappy coverage because they're part-time employees so the waiting period still applies certain insurance market reforms apply there's preventative care there's no annual and lifetime limit so a lot of the overall ACA principle still apply if you're going to offer coverage to part-time employees I think they wanted to make sure that part-time employees were not getting kind of a raw deal so what happens if we screw it up or if we don't do this or decide not to comply with this as Dana mentioned at the front we view this as a tax law this is do this or we're going to hit you with an excise tax so really that's kind of the whole pay or play type thing and why companies are going to comply with this and again for next year nothing's going to happen if you don't comply there won't be any tax penalty starting in 2015 is when it's going to go into effect and I think she raised a good point at the beginning is that you really have been given a mulligan here and some companies are waiting and saying hey we'll we'll mess with this next year but all of the companies that we met with it was everybody seemed to be scrambling because for years nobody thought this was going to actually come into place there was oh well Romney's going to win the election and overturn it oh well you know what the Supreme Court's going to overturn it it finally passed everybody said oh shoot it's going to come into play now and we don't have enough time to implement this and people were really scrambling so now you've kind of been given an extra 12 months and I think it's it's good to start looking at processes looking at software and saying can we can we count employees looking at independent contractors and saying who are our employees so I think there's some key things that need to be done probably starting now and to understand whether or not you're going to be able to comply so basically employers will face taxes there's a new code section in the Internal Revenue Code 4980H which really governs a lot of this and as I mentioned at the front if you do not offer minimum essential coverage or if your coverage is unaffordable or not of minimum value and somebody that's eligible for a credit goes out to the exchange and gets a credit then you're going to be deemed and I'll get into a little bit more specifics around what those penalties are and then that last bullet like we said there's a transition period for the penalties for 2014 and they won't apply until 2015 but again all of this hinges on someone going to the exchange and getting that tax credit yep any questions at this point I'm sorry if you're a large employer yes subject to what I mentioned certain principles around you can't discriminate on health annual lifetime limit I mean there's certain things for small employers that have to look at and tweak it yes right and then just continue to offer to our folks on employees when we're doing yes right yep okay so independent contractors what are you talking about with regards to how much time they spend in your employee account or so this has said in the regulations under health care reform that they're going to look at the common law rules of who an employer is and what that means is the IRS has what's known as a right to control test so you may say that someone is an independent contractor you may have a contract with them and it may say I get paid on a 1099 I am not an employee of you I don't offer benefits the IRS may come in and say actually even though you say that there's 20 factors that we look at that says differently it says that you have the right to control this person this person's been there for five years what's the there's no real difference between an employee and this individual so even though you say that the IRS may think otherwise and that could create potentially certain issues so let's say you have 45 employees and 20 contractors the IRS comes in down the road a couple years from now and says actually 10 of these contractors appear to be employees and now not only are you liable for back FICA and an employer kind of taxes that you should have been withholding because this person's actually an employee now whoops now you're at 55 employees and you're a large employer and you haven't been offering coverage so we don't know how this is going to play out but it definitely is a consideration to start looking at your population understanding well maybe this person is an employee and we should actually make them an employee and start paying them on a w2 and withholding employment taxes and certain things like that so I think this year is a good time to understand your policies and procedures around that and understand if you're complying and these are more these are your people like I'm hiring Tanner to come in and do something versus I'm going through an agency and they're providing Tanner to me so I you know Tanner and we see this a lot actually a lot in the IT arena a lot of those you know your IT people are independent contractors but they have badges to get in your in your building they have access to all your systems they have an email with your email address you know I mean all of that stuff really points to oh they're functioning as an employee not an independent contractor and so particularly if you're kind of in you know on that cuss of you know maybe I'm right at 50 mark and you really have to be aware of that because if the IRS comes in and and looks at this like Tanner said and does their 20 factor test and says yeah these extra 10 people are really employees then you know you could be subject to additional penalties because you weren't offering offering coverage if you're already a large employer you already have more decision what I'm trying to figure out is do you have to offer self-care coverage for the company so the issue you'll face there and I'll get into this it's actually on this slide is the what we call the A penalty where you have to offer coverage to substantially all your full-time employees it ends up being a 95% threshold and if for some reason you had a lot of independent contractors that you were not offering coverage to but the IRS says no these are employees all of a sudden you thought you were offering coverage to all your employees but you may not be and you may fall below that 95% and now all of a sudden you're potentially hit with an excise tax penalty so now you're deemed to have not offered coverage to 95% plus of your full-time employees and that's the big penalty so that's $2,000 times every employee every full-time employee and you get to subtract out the first 30 but I mean that's the big penalty because they deem you as you didn't offer coverage and you know we had a client in Houston and Tanner actually worked a lot with them but half of their workforce was independent contractors who a lot of them were functioning in an employee capacity and so you know they really needed to look at that and you know either kind of change their arrangement with those people if they don't want to bring them on as full-time employees or bring them on as full-time employees and one more point and then I'll get to your question I think the again I will say we don't know how this is going to play out the IRS has not issued regulations or guidance on how they're going to enforce this but from what we've seen with employer or with the service the DOL and certain litigation and there's even a White House initiative this is a hot-button issue that the regulatory bodies are focusing on big-time they're focusing on back taxes and we all know they're struggling to pay for this law so I would not be surprised to see them coming in on piggybacking on an independent contractor review and applying the ACA penalties as well because it's a money grab I mean it's low-hanging fruit that potentially it could result in large revenues for the government but keep in mind this all hinges on someone goes to the exchange and gets the tax credit that has to happen before any of this other stuff comes into play so you and then there's a lot that they'll look at it's not necessarily just the time I mean from what you're telling me sounds like that it truly are kind of contractors you're contracted out to do your landscaping but again I think it is important for companies to look at things like that understand hey are we doing this right so it I mean it sounds like it's fine but you want to really get into the details and make sure you feel comfortable with that so the IRS has actually just recently issued guidance that basically if they are offered coverage through their agency then you're fine but it's going to be on you to look at that contract are you going to say to your agency hey what if you're not offering coverage and I get dinged for a penalty are you going to indemnify me for that so there's certain things that you want to work out with your agency to make sure that you're you're covered in case that they're not doing what they say they do or maybe it's you get a representation letter from the agency that says yeah we are offering coverage in this we've had an independent firm come in and say it meets its minimum value it is affordable we're offering it to everyone and to the extent this is wrong we'll pay the penalties so I think there's considerations on that side as well sure it affects them the same for the most part I think the only difference that we've seen so far is there was a PCORI filing that was due this past July 31st so this is again a way to fund part of this law of the patient-centered outcome research institute so this is a program that the government's putting in for health research I think self-funded in plans had to file that on their own fully insured the insurer filed that penalty or that excise tax filing yeah that's really the primary difference in fully insured versus self-funded is who's responsible for the filings and paying like the PCORI fee and the reinsurance fee and then I mean you're obviously if you're a self insured you're on the hook for making sure your own plan design works right I mean generally if you're fully insured your insurer is going to offer you something I mean they're not going to offer you a product that is not compliant so it's more just on you to make sure that what you're offering meets your minimum value is affordable then I don't think there would be a difference if you're kind of having that outsource okay we only have a little bit less than 15 minutes yeah so let me do a high level of just kind of the penalties so there's two penalties under 4980H there's what we're called a penalty because it's subsection A of that and this is the big one where if the large employer does not offer minimum essential coverage to full-time employees so 30 hours again and they're dependent you may face a tax of $2,000 multiplied by your total employee population if one of those employees goes and gets a credit so as Dana mentioned this is all hinges on the fact that I have somebody that's working for me that's making 100 to 400% of the poverty line they decide they don't want coverage with me they go out to the exchange and get a tax credit and are approved if that happens then all of a sudden I've kind of passed through the excise tax gate and now can potentially be subject to it if I'm not offering coverage and when we say full-time employees again there's kind of a the IRS wanted to prevent the fact that you get deemed for this if there's a foot fault so there's a 95% threshold so you have to offer it to 95% of your employees well and one thing to keep in mind you know poverty level you think oh that's really low and I don't pay any of my employees that low but it's one to four times which actually ends up being $44,000 or something like that so that's not you know that's good wages that's still going to put them in that category of being eligible for a tax credit so what you're saying we have to offer benefits to the dependent correct now dependence does not include spouse right so actually UPS was in the news a couple weeks ago because they said if your spouse can get coverage through their employer we're not covering them they're off they're not eligible for our plan and that was estimated to save them like $40 million a year or something what if the spouse doesn't work then they're going to have to they're eligible for UPS's plan but if the spouse can get coverage through their employer then UPS was saying they can't be on our plan just to kind of hammer home Dana's point and this is a little hard to see I know but at the bottom two rows of the online safe harbor for this year 100% was 11.5 but up to 400% is 45 almost $46,000 so if I'm making it if I'm making 45,000 salary I'm potentially eligible for a premium tax credit so it's not super low or paid people as you might think there are a lot of people that are going to be eligible for this and then let me get into the B tax because basically if your coverage you offer the coverage again if somebody goes and gets a premium tax credit but the coverage is for some reason unaffordable or it does not provide minimum value then the employer may face a tax of $3,000 multiplied by the number of full-time employees receiving the premium tax credit or $2,000 times the number of full-time employees whichever is less so again this is hinged on the fact of who's getting a premium tax credit okay I didn't know if you had a question and so again I don't know if they've covered this in sessions earlier today but the affordability and the minimum value standards do you guys are you all familiar with that or we can go over that pretty quickly yeah I can run so affordability is basically the employees share no spouses premium for the employer's lowest cost plan cannot exceed 9.5% of household income or the employee may be eligible for a tax credit so a lot of employers are saying we have no idea what household income is I mean somebody's spouse may be CEO of a Fortune 500 company but we're paying them $10,000 we don't know so there are certain safe harbors that you can rely on companies will have access to so there's a W-2 safe harbor so basically you know what you're paying employees you know what you're reporting in box 1 of a W-2 as long as the employee premium does not exceed 9.5% of what's reported in box 1 then it can be considered affordable there's a rate of pay safe harbor so the employee premium share cannot exceed 9.5% of basically the hourly rate of pay and there's certain kind of mechanical way to calculate that I think you use 130 hours per month again and then there's a federal poverty line safe harbor so if your premiums do not exceed 9.5% of the federal poverty line then the coverage will be considered affordable and again here's the slide kind of on the affordability these are some of the estimates and like I said there's a lot of detail here so if you do want to see these slides let us know and we can send these out minimum value a plan basically is not doesn't provide minimum value if the plan's share of the total allowed cost of benefits provided under the plan is less than 60% of such cost and this is generally an actuarial type analysis that's done to look at everyone and understand whether or not the company is providing 60% or more of the benefits so there's a certain cost sharing arrangement that has to be done in order to meet minimum value so you can't basically can't just make the employees pay for everything the employer is going to have to cover part of it or else it's not going to be considered minimum value yeah in our coverage for our employees in our county we have the basic health care insurance coverage and then we have another sign up where we sign up for optional coverages which the employees pay we pick up all the premiums on the basis and we have the optional vehicle dental and eye care on the rest in this will those two things be combined to arrive at that nine and a half or is that nine and a half does that just apply to the basic type of health care and not include dental care, eye care and all the rest it just applies to the basic it wouldn't be any sort of supplemental right assuming your basic meets the other requirements in terms of package that our employees somewhere could be paying up to nine and a half percent of their gross pay plus the major part that they pay for all this optional so their total insurance premium and eye care could get to be a cruiser yeah yep so I think that at a high level those are kind of the taxes I will that there are certain communications with employees in the IRS and we've kind of laid out the steps of how it'll work so one thing to be aware of is basically the employers under the federal labor standards act will must provide employees with information about coverage and availability of the exchanges by ten one so that's kind of a compliance deadline that you need to be aware of that these notices need to go out by October 1st and this is kind of in my opinion kind of tricky timing because if you're on a calendar your benefit plan you don't have open enrollment until probably November sometime so your employees are now getting these notices October 1st they're seeing all these ads for the exchanges they're hearing all the stuff about the exchanges but they don't actually they aren't getting their benefits information necessarily or the ability to enroll and change their benefits for another month to six weeks so that timing is going to leave some questions in employees minds and okay well what is better for me what do I have now I mean I know if I just think about myself I mean I don't think about my benefits unless I need to go to the doctor or it's open open enrollment I mean other than that I don't really give it a lot of thought so you know and if I'm just a normal employee if I'm not out at conferences talking about this I don't really get this I mean this is a very complicated law I think you know they're just going to see the ads they're going to hear stuff from their friends and it's going to be like okay what do I do can I go to the exchange and get it for free maybe I can I don't know maybe I need to check that out I mean I just think it's a critical time to really start communicating with your employees and making sure they know the value of the benefits that you're offering and the cost that they're incurring for that versus what they could potentially get on the exchange in summary so in summary there's a lot here there is there's a time here the reason you're here all day is because there's a lot of aspects of this law there's a lot of things employers need to be aware of start looking at your plans I think the key takeaway is the one year delay is not only a blessing from just an administrative standpoint but really to just start getting your ducks in a row I think we have no doubt this is going to go into effect at some point or another and really it kind of behooves employers to start looking at these items and start kind of making sure everything is going to be in compliance are you both staying through lunch? yes so Dana and Tana will be here get their contact information they'll be around I'm sure they'll be happy to speak with you this sounds like we could have done this for two or three hours on behalf of the chamber Dana and Tana I'd like to present you with Bill George's book he's a professor business, a Harvard business school this book's been noted by New York Times so one of the most important business books on leadership and he also is sort of a hometown boy he was chairman and CEO of Metronus Corporation for a number of years so we really thank you Tana this morning we'll join you in our welcome


At least 39 have died in Panama after a bus carrying more than 60 migrants fell off a cliff early on February 15, the country's migration authorities said, marking the worst migration accident in the Central American country's history. Local media showed an aerial view of the accident scene, with parts of the wrecked bus lying along the road and multiple rescue teams in the area. The bus, carrying migrants who had traveled through the dairy and gap, a dangerous stretch of jungle that connects Colombia to Central America, was heading towards a shelter located in the western coastal province of Cherokee, which borders Costa Rica. More than half of the 66 passengers in the bus died in the accident near the Gualacá migrant shelter, an area with many curving roads, authorities said. About 20 people were hospitalized with injuries, some of them severely wounded. Panama's Social Security Authority told Reuters. Migration authorities did not provide details on the nationalities of the victims, saying it would first communicate with the relatives and respective embassies of the passengers. Last year, a record 248,000 migrants crossed the dairy and gap, most of them Venezuelans. A new, stricter US migration policy has resulted in many being returned to Panama, where they often cannot afford transportation back to Venezuela. Since the beginning of 2023, a further 32,800 have crossed the dairy and gap, Panama's foreign ministry said on Tuesday.


Swiffer Duster 360. 360 means it goes 360 view all the way around this handle. Now they also sell a 180 view. You can see that on half of it there's nothing. Let's talk a little bit about the 360. It's designed by the Procter & Gamble company who also makes febrize. So if you love the smell of febrize, they make the Swiffer Duster heads. These are disposable heads. They make these in unscented and febrize scented duster heads. Yay!  Okay, so it is a plastic head. It's about 13 inches in length and it comes apart just like this. Then when you get ready to put it back together, it just snaps in place and there are two little tiny sleeves that this just slides right into and slides on and becomes your duster. Now I like this duster because it's small enough that it fits in my back pocket. So as a professional house cleaner, I always have it with me and it's always just within reach. So I can be cleaning the house doing something and then I see some dust. Grab it, take it out, dust it, put it back and I'm good to go. So I love having it with me at all times. Now the secret to making this work is you've got to have a button in your back pocket so that it holds the duster from falling out while you're using it. When I first heard about this, it was several years ago, another house cleaner called me and said, you're going to love the new Swiffer Duster and I did not love it. I was accustomed to the old one, the feather duster, where you would use them and then you would shake them out when you're done and this one does not shake, okay? So it's designed with all of these trap and hold elements to it so that when you shake it like you do a regular duster, nothing comes out. And so that's kind of awesome because it traps everything inside. Now as a professional house cleaner, we are inside people's houses and we charge them for the cleaning supplies. So my suggestion is build in the cost of one of these per house because you will use one per house and when you're done, they look nasty, okay? They've got lots of dust on them. See if I can get up close here. You can see how nasty that looks. It's got hair and cobwebs and dust and junk on it. And this is typical of any house. You're going to get this much dust off any house but when you're done, you don't want to take this into another customer's house.  All right, now I want to show you a couple of different ways that we use the Swiffer Duster. I use it on all sorts of things. For example, silk plants. If you're going to use a Swiffer Duster on silk plants, what you want to do is you want to pull the stem of the silk plant out and you want to start at the base of the silk plant and you want to brush towards yourself so that you're brushing the dust in the direction or the grain of the plant. It's also great for real plants that have deposits on them either from themselves or from dust or debris or whatever. So you can use them on real and silk plants. Another thing we use the Swiffer Duster on are our blinds. So if you have blinds that are really icky from a customer's house, the first time you clean their blinds you may want to clean them with soap and water and then after that just use your Swiffer Duster because the pattern of using them on the blinds is very easy to do and it will keep your blinds dust free. And again because it traps the stuff that's there. If there are any cobwebs inside the windows it will trap that.  Let's say that you have something fine like glasses on a baker's rack. When you use this on the glasses on the baker's rack you just want to be very careful that you hold the glasses in place so that you don't knock them off as you're dusting. You can dust right between those and the little filters of the microfiber cloth here. It goes between the glasses and so it fits into little nooks and crannies that normally you would not be able to reach with just a regular cloth. Another thing that we use the Swiffer Duster on are stairwells. This is excellent for stairwells to reach the banister railings that you would be very hard to get between especially if they have little decorations and designs on them like those that you find on rod iron stairs. And then as you come down the stairs there are ledges on the side of the stairs that you want to make sure that you dust as well. And while you're there on the stairs especially if it's a hardwood floor hardwood stairs you can actually dust the stairs themselves and make sure you get this rim underneath the stair where cobwebs like to hide. Then you sweep all your dust down to the bottom of the stairs and guess what there's nothing there because it's trapped inside your Swiffer Duster. So if you're going to do a stairway what I do recommend is that you use this and do this as one of the very last things you do cleaning a customer's house because at the end of the stairs you're going to want to throw the head away because it will be full of stuff and it will be icky. Alright another thing that we like to use this on are lights. We like to use it for recessed lighting to clear out cobwebs. Now the secret of using it with lights any light is have the light turned off because if you go at this with the light turned on and the light is hot this can melt or it can stick to the light bulb. So you don't want that to happen. You want to make sure that the light is turned off and cool before you go around recessed lights or inside bathroom lights or inside lamps or on the outside of lamp shades you want to make sure that your lamps are cool. Also if you touch a light that's hot there's a chance if you touch the light bulb itself that the light bulb could break. So you want to be very careful about that. But it's great for all kinds of flat surfaces. It's great for things like TV screens so that you can get all that electrostatic dust off there. It's great for entertainment centers. It's great for wood pieces of furniture and then as you go down the sides of the wood furniture you capture all the dust that's resting on the side and in all the ledges and then underneath the furniture where cobwebs also like to hide. So it's a great tool because it's so flexible. It flattens out so that it slides under under skinny places and into skinny places and between skinny places and then again because it's so convenient it's always on your person. Now there's another thing that I should mention. Swiffer Duster has an extender pole so if there are places that you want to reach that are up high and you don't have a step ladder you can buy the extender version. We'll talk about that another time but if you don't have the extender pole we can just use a small step ladder and even get things like ceiling fans and the tops of refrigerators and you can also get other things that are high like shelves or even cabinets. So there are so many different things that you can do with the Swiffer Duster. Now one of my favorite uses for the Swiffer Duster is I keep it in the pocket of my car right as you open the door.  So another great use for the Swiffer Duster.


For the design team ad sportsmen, the Heritage 261 started as a dream on a whiteboard to define an entirely new class of family-focused center console boats unlike anything else on the market. The Heritage 261 packs all of this innovation into one very versatile 26-foot boat. Whether you like being on, in, or around the water, the Heritage 261 has everything that you need. Its water-centric views are going to keep the entire family immersed in the moment. For specifications, this yacht-certified boat is 26 feet 6 inches with a 9-foot 5-inch beam, 160 gallons of fuel, 22 degrees of dead-rice at the transom, and a 12-inch draft. The Heritage series of boats is built using our preparatory sport tech advanced fabrication process utilizing composite materials and no wood. This boat comes packed with a transferable 10-year haul-limited warranty and is NMMA certified. This certification ensures that this boat adheres to the highest safety standard guidelines set by the ABYC, bringing you the peace of mind that you are purchasing a high quality and safe boat for you and your family. For a detailed look at how our boats are built, check out our series behind the glass, where we explore our build process in great detail. To suit your personal style, we offer a range of colors for the hull side, hull bottom, and hardtop underside, as well as standard powder coating in white or black. When it comes to boat upholstered materials, quality and durability are essential. That's why we use side-leather marine silicone coated fabrics in all of our boats. These fabrics are resistant to UV, salt spray, staining, cold cracking and hydrolysis. Side-leather fabrics don't contain plasticizers, which can be breeding ground for bacteria. We offer three color options, white, desert tan, or ash gray and feature our double diamond stitch pattern. At the bow of the Heritage 261, you'll notice a plush upgraded interior, maximized for capacity and comfort. We've recessed the combing boasters and the seat bottoms to make the bow seating deeper and more comfortable. This also provides room for a larger, upgraded, removable backrest. This wraparound seating style is very conducive to gatherings around the large, actuated table. This triple-purpose table serves as a large table for all of those sitting around. But can be lowered halfway down and covered with a cushion to turn the bow into a large sunpack, perfect for sunbathing on those hot summer days. When not in use, lower it all the way down for a completely flush, unobstructed bow floor. Ample storage at the bow with two easily accessible, large insulated fish box under the seats, which double up as dry storage and a deep center storage compartment. Wrapping around is a curved, grab handle for safety, plenty of cup holders and speakers to play your favorite tunes. Up here, you'll find an oversized anchored locker compartment and pull-up cleats. Opening the lid reveals the through-hole windlass anchoring system. This design leaves the top deck without any obstruction and we've included foot controls at the bow for easy operation. The console of this boat features a modern and sleek look that follows the sportsman design language. The heart-top frame is built using sturdy D-tubing that is extruded from a single piece of aluminum. This design removes the frame legs from the deck, giving you more space around the console and a robust frame structure. Additionally, it yields more space inside the head. On the front of the console, you'll find a comfortable two-person bench seat. By lifting the bottom cushion, you will reveal the 68 quart insulated cooler. This is a perfect place to store additional food and drinks while out on the water. The starboard side of the console features the iconic sportsman side window glass, which floods the interior space with light. The console is wrapped with a tempered glass enclosure that includes a manually actuated vent. Moving aft, you'll find the entry to the console, purposely built on the side of the console to give you access even when the boat is underway. Inside, you'll find plenty of room to change after a long day at the sandbar, storage, as well as access to the boat's electrical components. At the forward area of the console, we have designated trolling motor battery storage. This allows space for up to three trolling motor batteries tucked away from the visible console floor, providing a more streamlined and uncluttered appearance. Accessing the electrical components of the boat is a breeze thanks to the large opening and easily accessible design behind the helm. To power the onboard electronics, we've equipped this model with a dual battery setup for single engines or a triple battery setup for twins. This model is equipped standard with Discover AGM traction batteries, which are the most advanced AGM batteries on the market. A standout option for families on this model is the standard enclosed porcelain head with overboard discharge and pump-out system. At the helm, comfort and function meets. The design has been optimized for ergonomics. This boat features our SportLink Electronics Integration System, which will give you additional warranties and perks as a sportsman boat owner. The dash of this boat is equipped with the latest Garmin electronics, including the powerful 1243XSV 12-inch GPS Sonar combo with a Garmin GT15M chair through-hole transducer. This brand new transducer offering from Garmin features 600 watts of power, a water temperature sensor and a bandwidth of 80 to 160 kHz. For those looking for an even more high-end look and feel, an optional second GPS Sonar combo is available to fill up the dash. For an elevated audio experience, this model includes a Garmin Fusion Apollo 770 touchscreen head unit paired with the top-of-the-line Garmin Fusion signature speakers, subwoofers and amplifiers. This audio system is enhanced by the latest DSP technology, including our exclusive SportTune audio system, which delivers exceptional audio performance that will leave you amazed. One great feature of SportLink is the digital switching system. This system is powered by the Dometic C-Star Interact DCM digital switching system. The system removes switches from the dash and gives the entire home a clean and clutter-free look. In the rare instance where your screens go down, the system can operate independently of the screens through the built-in Fuse redundancy panel located inside the head. This ensures maximal reliability for safe boat operation. The system is also equipped to be operated from the custom sports and remote control from up to 150 feet away. Other convenience features include a tilt helm with a sportsman's stainless steel steering wheel. Above the console, we have two storage cubbies that are perfect for storing small items such as phones and wallets. At the Senate, there is a compass with a built-in light and a wireless phone charger on the port-side cubby. For even more storage, we've added an extra compartment at the bottom of the footrest providing additional space to keep your belongings organized and within reach. We wrap up the helm area with a sportsman helm pad. This pad provides a finishing touch that is both comfortable and stylish. Focusing on the beautiful hardtop on this boat, you'll notice that it was designed to appear in forward motion with modern and sleek lines and a robust detubing frame. The top features built-in navigation lights with a design that positions completely off the deck for an unobstructed installation. This boat also comes equipped with a Garmin VHF 115 radio and an antenna mounted on a ratcheted mount. The hardtop offers mounting location for six speakers to surround the helm with immersive sound, even while underway. The spreader lights on the hardtop provide deck work lights for early morning or late night trips. And to complete the top, we've added rocket launchers across the back, providing ample space for up to five fishing rods. Additionally, you'll find kingfish rod holders on port and starboard. The half-tower with second station upgrade is the ultimate addition to take your sportsman to the next level. With its premium features and advanced design, this half-tower provides unmatched comfort, visibility, and control for your own water adventures. Whether you're fishing, cruising, or just enjoying a day out on the water, the half-tower with second station ensures that you have the best vantage point to navigate and take in the scenery. Comfort was a key design element for all areas of the Heritage 261. Seating arrangement at the helm of this boat includes dual captain's chairs with armrests and adjustable boasters. Inside the leaning post is a designated battery storage. This sets the battery's centerline for even weight distribution and keeps them dry and out of the elements. The door is easily removable for routine maintenance. On the port side, you gain access to the battery switch panel with switches for the house, engines, and additional accessories. The main breakers are also located on this panel where they can be easily reset. Moving our attention to the gunnels, molded in rod racks with storage for up to three rods on each side. Over the top, flush-mounted gem-loaded rod holders, and for added comfort when fishing, cockpit boaster cushions. They provide a soft cushion to push your knees and legs into when reaching into the water or fighting a fish. The Heritage is known for its deep and comfortable edge-to-edge rear bench seat, jaw-dropping total-axis hatch, and of course, we can't forget to mention, sandbar mode. The rear deck layout features seating for up to four adults. This feature makes the Heritage Series and the 261 a wonderful choice for families. It not only provides extra seating, but it also allows the kids to be seated down below the gunnel for additional safety. For this model, another class first twin aquarium 16 gallon live wells. This is both aesthetically beautiful and functional. These insulated boxes can double up for drinks and storage. At the center is the iconic Heritage Total Access Hatch. Lifting the hatch reveals a large access to the build components and additional storage. Moving to the sides, the deck has two 112 quart insulated and mass-weighted fish boxes with large fully insulated lids to keep all your catch fresh. This model comes standard with both raw water washdown and a fresh water washdown. The outlets are located under the gunnel caps on port and starboard. One important safety feature built into the Heritage 261 is the self-bending cockpit, which allows any water on the deck to drain overboard and not into the bilge area. All sportsmen boats have a collector box drainage system that pipes the water directly overboard without mechanical assistance. When dreaming up the Heritage 261, this idea of a sandbar mode came into the picture, and that's where this boat comes to life. Design considerations for this started with the Leaning Post, where we had to make room for swiveling captain's chairs. This allows both chairs to be rotated aft for entertainment or to watch a skier behind the boat. The rear of the Leaning Post has a standard Yeti cooler. When the seats are in the rear position, it serves as a great footrest. For the rear section of this model, we've doubled up on everything. This boat features not one but two side entry doors, another class-leading feature. Having doors on both sides allows for easy reentry from either side, and when it comes time to fuel up, we've also included fuel fills on both sides. For the ultimate water-centric view, the doors both open a full 180 degrees. Our side doors are designed to be fully supported by the strenuous system for strength and rigidity. We include a removable four-step ladder, which can be used on either door and has dedicated storage inside of the console. The outboard seats can be flipped around to double up as aft facing seats or completely removed for a completely open rear walkthrough. We identified several must-have features at the sandbar, so we've designed those in. For most customers, a stern anchor is a must at the sandbar, and too often, there is no designated storage for it. So we took it to the next level and designed in stern anchor storage on the starboard side. We are including the anchor rope and chain standard on this model. While outside of the boat, grabbing your favorite drink always involves jumping back on the boat to grab it from the cooler. Instead, we've designed in a cooler for drinks on the port side accessible from outside of the boat. This is one feature you will absolutely love. With having dual transom walkthroughs, it only made sense to equip the boat with dual telescoping boarding ladders. This gives you the convenience to board from either side. To wrap up the rear section, we wanted to include something for the whole family, so we designed in a standard telescoping ski tow pole. When it is in the down position, it's completely out of the way, but with a single motion, you get a sturdy ski tow bar for tubing, skiing, weight boarding, and many other fun on-water activities. When we say designed in, we mean it. This ski tow bar ties into the string of the boat to give you immense strength, even under heavy loads. The Heritage 261 was designed for families that primarily cruise and entertain, but still retains the ride quality in fishing amenities. This boat can be powered with a single engine or twins. If you choose the single engine seven, you'll love the newly redesigned Yamaha 450 XTO, which replaced the Yamaha 425 XTO and brings even more power to this engine. For those of you who want twin engines, you'll be more than pleased with the performance of the all-new Yamaha 200, featuring integrated steering, a newly designed cowling, and a factory white color. One of the most exciting features of this model is a standard designed-in integration with the all-new SeaKeeper ride system, which represents a game changer for boat performance and handling. Not to be confused with the gyroscopic SeaKeeper, this system uses advanced technology to eliminate up to 70% of pitch and roll while underway, providing a smooth and stable ride that enhances comfort, control, and confidence on the water. If you are interested in seeing the SeaKeeper ride system in action and learning more about how it revolutionizes a boat's performance and handling, be sure to check out our series on the topic. You can find the link to those videos in the description below. For those who like to cruise at night in style, you'll love the standard lighting package, which includes a pair of blue Lumetech underwater lights for added ambience and safety. The deck is also well-lit with the interior LED lighting package, creating a warm and inviting atmosphere for you and your guests. Whether you're out for an evening cruise or enjoying a night of fishing, our advanced lighting system is sure to impress. The Heritage 261 has been designed through and through with your family and mind. We've looked at every single feature of this boat and found innovations along the way. From the spacious bow layout to sandbar mode, this boat checks every box. For more information, navigate to SportsmanBoatsMFG.com or contact your local dealer. Thanks for watching!


The Kraft Foods Company presents Willard Waterman as the Great Gilded Sleeves. The Great Gilded Sleeves is brought to you partially transcribed by the Kraft Foods Company. There's wonderful eating in every pound of Kraft's new Parquet Margarine. You like new Parquet because it always tastes so fresh and appetizing because it spreads smoothly even when ice cold. And now Kraft has more good news for you. In every package of Parquet you buy, you can order a pair of famous Powerzmodel nylon stockings at half price. I'll tell you more about Parquet Margarine's sensational offer on Powerzmodel Nylons in just a minute. It's funny the changes that take place around the house the minute the family gets a dog. Since the Great Gilded Sleeves cousin Bert sent him a great dame from Canada, a six foot fence has grown up around the backyard, the flower beds have taken a beating, and there's a tunnel under the house foundation for storing important bones. Sometimes a dog leaves these pleasant surroundings and wanders away from home. He just won't stay home Mr. Gilles, see that dog's been gone all day. Where's Leroy, Bertie? He's out after that dog, he jumped that six foot fence. Leroy? No sir, that dog. Oh. He jumped that six foot fence, I never saw a dog like that dog, he just won't stay home. Well I wonder where they are now. That dog's out chasing something, Leroy's out chasing the dog. I thought that fence would hold him. Oh no sir, that dog rads up on his hind legs and looks over that fence just as big as you please. Oh. Next thing you know he's gone. If you want to keep that dog home you'll have to put a tent over the backyard. No Bertie. Yes sir, if you're going to keep that dog home you'll need a tent over the backyard. Yeah, all right Bertie. Mr. Gilles, see you're not on the way to keep that dog home. Yes Bertie. That's right, you have to. Well, I guess a big elephant like that could use a tent. Oh, Leroy found the dog. Leroy! All right.  Leroy. You shouldn't talk to the dog like that. I'm going to teach him a lesson, honk, I want him to realize what he's done. Now what did he do? He's been chasing Mr. Peavey's cat. Well I didn't know Peavey had a cat. Well it's an old stray that hangs out back of his store. Oh, that one. Yeah, the one with a crooked tail. Mr. Peavey thinks a lot of that old stray, he feeds him in everything. He even gives him vitamins. Oh my goodness. You think I should go down and apologize? Well I'll stop by Peavey's in the morning and tell him we're sorry. Gosh, you suppose Mr. Peavey's really sore? Well I wouldn't worry about it Leroy. It's natural for a dog to chase cats. I don't imagine Peavey's offended. You don't know what happened. The dog chased the cat in the back door just as Mr. Peavey was coming out with a box of empty bottles. The cat ran between Mr. Peavey's legs but the dog couldn't make it. He might be sore at that. Lucky this morning. Nobody's in the barber's chair. I think I'll pick up Shade. Hello Floyd. Oh hi, Commish. Like the fella said when the tide didn't come in, long time no sea. Yes, yes. How about a shave, Floyd? Hop right up in the chair. You're my first customer. Yeah, you're all right. Yeah. Good. I always like to work on a friend first thing in the morning when the hand's a little shaky. Floyd, I wish you'd do your practicing on yourself. Me? I never shave till 11 o'clock when I'm sure I'm awake. What a barber. Fasten your safety belt. Here comes the hot towel. You want a shave that'll carry you through the night or just until 5 o'clock shadow time? Make it close, Floyd. Hey, you must be stepping out with that classy Mrs. Ransom tonight. Well, I hadn't given it any thought. Wait till the sun goes down. You will. You'll come out of the woods like a big... You want another hot towel? No, that's enough, Floyd. My wife, Lovie, saw your Savannah siren in the beauty parlor the other day, but you didn't recognize her. Oh? She was wearing a mud pack. Commish, have you ever seen her in mud? Of course not, Floyd. You've got any serious intentions. You ought to look into these things before the nuts tide. Well, I'm in no hurry, Floyd. First time I saw Lovie with a hair and curls and a chin and a sling, I nearly jumped out of our contract. Floyd, do you mind getting on with the shave? I have to stop my peevees before I go to the office. Oh, sure. You have breakfast with the peeve? No. Our great Dane's been chasing his cat, so I thought I'd go over and apologize. Oh, yeah? Why should you apologize? Well, Floyd, the dog shouldn't have been dying. There's a leash law. The dogs aren't supposed to roam the streets, you know. But cats can, huh? Well, yes. How about that?  Well, I hadn't thought of that. Dogs ought to have as many rights as cats. This is a free country, ain't it? Goodness knows I've tried to keep them in. I built a six-foot fence. And what's the peeve done to keep this cat in? Nothing. My mom just sits over there tempting your dog to chase him. Peevee's the guy that ought to apologize. Floyd, what do you have against peevee?  Oh, so that's it. Besides, he bought one of them new gadgets and cuts his own hair now. Oh. Hello, Mr. Jones, ma'am. What can I do for you this morning? Peevee, I understand our dog has been chasing your cat. Mr. Gillisleeves, that's not a dog. I thought it was sea biscuit. Sea biscuit? I rode him from the back door all the way out to the front. Oh. My cat ran between my legs and the dog tried to follow him. Well, I heard about that, and I've come to apologize. That's very nice of you, Mr. Gillisleeves. These things do happen. But it's nothing to break up an old friendship. Oh, I know.  Yeah, I was just thinking how funny you must have looked when that dog tripped you up.  Yeah. Well, it wasn't funny at the time. Oh, I didn't give him anything to see that.  Well, Peevee, it wouldn't have happened if you didn't keep that old crooked-tailed alley cat. Mr. Gillisleeves, I'll thank you not to call Chester an alley cat. Oh, come now, Peevee. He just smells strange. He is not. I knew both his father and his mother. You got a lot more sense than some dogs, I know. Well, Peevee, let's not go comparing him with a full-blooded great dain. Well, just keep him on a leash, Mr. Gillisleeves. That's all I've got to say. Just keep him on a leash. Oh, wait a minute. Let's not get tough about this. Who's getting tough? Just keep him on a leash. If you felt this way, why didn't you say so when I came in here? What are you, mealy-mouthed? Speaking of mouths, I know a water commissioner who has too much lip. Peevee, don't get personal. I know a druddest who'd look better if he didn't cut his own hair. Speaking of hair, I know somebody who gets in mind. Well, I'll get out of it. I may never set foot in your store again. And you'll regret it. No, no, I wouldn't say that. You home, Mr. Gillisleeves? Yes, Bertie. Leroy's been asking about you. He's asked you to find out what Mr. Peevee had to say. Well, Peevee had quite a lot to say on the subject. Yes, but you fixed everything up, huh? Yeah, I fixed everything. Uh-oh. What happened? Well, I went in to apologize, but one word led to another until I was saying some things I shouldn't say to Peevee. Yes, sir. Hi, Uncle. Hello, Leroy. So you and him had words, Mr. Gillisleeves? Yeah, it was all my fault, Bertie. Who had words? Mr. Peevee is pretty upset, Leroy. About the dog? He's not upset with the dog. He's upset with Mr. Gillisleeves. Yeah? We'd better try to keep the dog away from there. First thing we know, somebody's going to pick up that dog and take him to the pound. Oh, Mr. Peevee wouldn't do that. Well, I've never seen Peevee angrier than he was with me today. I think he might even send me to the pound. Yes, sir. First thing we know, that dog's going to end up in the pound. Peevee reminded me of the leash law. What's that? Dogs can't run loosely, Leroy. If they get loose from the leash, they'll end up in the pound. Gosh, what's a pound like? It's a jail for dogs, boy. No, Bertie. I see that poor dog sitting in his cell looking through their bars right now. Please, Bertie. That poor dog sitting behind the bars waiting to get bailed out. Gosh, what are we going to do? Well, we can't teach the dog not to chase cats. No, sir. Dogs chase cats every day. It's when people get mixed up in it. That's when the fur begins to fly. Now Bertie's upset with me. Leroy, we just have to start training the dog. Not to chase cats? No. We'll try to make him understand when he goes out he has to be on a leash. In fact, I think I'll put him on a leash and walk him down to Peevee's to show we intend to do the right thing. So, well, Aunt? I want to do whatever I can to stay on good terms with Peevee. Are there skills, please? Yes, Bertie.  No. When we get to the drugstore, we may split a banana split. Yes. Will that be all, Mrs. Ranson? Well, that's all for now. Thank you, Mr. Peevee. I'm tempted to buy a box of that candy, but Throckmort usually keeps me supplied with it. You might give him a hint when he comes in. I gave him a hint this morning. You did? To stay out of the store. What's the matter with you and Throckmort? There's nothing the matter with me. I'm Mr. Peevee. You're so cute when you're angry. Well, I seldom get this way, but my cat has been chased once too often. Gracious? Has Throckmorten been chasing your cat? No, it's not a good day in here, you big bully. What's that? That's Ketter. Are you okay? I have to bring him inside on account of that dog.  Very nice. Well, hello, Leela. Throckmorten, we were just talking about you. Yeah, I can imagine what Peevee would say. Hello, Peevee. Oh, boy, close the door. Well, you said not to stick my foot in here, so I'm just sticking my head in. Now close the door on your head. I declare you two aren't getting along. Peevee, this is silly. I just came by to assure you that everything's going to be all right. You don't say. Your cat has nothing to worry about. Look, I've got the dog on a leash now. Come on in, dog. Hey, Mr. Gilda, please don't bring that dog in here. Peevee, it's all right. Throckmorten, Mr. Peevee, there's cats in here. Oh, Mr. Gilda, please, I brought my cat inside to keep him away from your dog. Stop worrying, Peevee. I've got the dog on a leash. Don't worry, kitty. Oh, mercy. Mr. Gilda, sleep. If you don't take your dog out of the farm, he's here. Oh, he's steady, dog. He's not going to stop pulling. Oh, you can't hold him, Throckmorten. Oh, leash broke. Run, Chester. Come back here, dog. Dog, you get out of my pattern medicine. Oh, Peevee. But I'm running out the front. The great Gilda's leave will return in just a moment. 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So that's why the dog came home smelling like cough syrup. Well, he did break a few bottles. That's when peevee threatened to call a lawyer. Now, I know that dog's hated for the barrel. Yeah? Uncle, if Mr. Peevee gets a lawyer, can we get a lawyer for the dog? Well, if that dog goes on trial, he's sure to win, because nobody can look sorry than that dog. He's a sorry dog, all right. He's a swell dog. Uncle, why aren't you and Mr. Peevee make up? Well, I've tried, my boy. Next time, try going in without the dog. As far as I'm concerned, it's peevee's move. If he doesn't value my friendship, I don't want his. Oh, uncle. Come to think of it, he has much of a drugstore anyway. Not now, at least. Mr. Steele's leave isn't going to cost you much to fix the place up. It only amounts to three or four dollars, Bertie. I told peevee I'd drop around and pay him. What did he say, uncle? Well, he won't let me. Well, that's nice of Mr. Peevee. He said he'd rather take the loss than have me come in the store.  I'll dial him and you talk to him. I doubt if he'll even talk to me.  You're fellow jolly boys. Well... Peevee's pharmacy.  Peevee, this is Gilda's leave. Well, I'm glad you called. You are? He's glad I called. I've decided to let you pay for the damage after all. Twenty dollars and sixty cents. Oh! I'm not going to break this leash. Chasing cats. Uncle gets into enough trouble without you. I'll sit down here on the curb. I won't have a talk with you. Give yourself. Why do you have to keep running away from home?   I'm serious.  Don't look at me like that. You're not that sorry. Well, maybe you're sorry. You're not such a bad guy for a dog. Is that you, Leroy? Hi, Mr. Ransom. I've never seen such a far-long picture.  I've been giving them a lecture. Oh? Tell them about all the trouble he's caused. If he doesn't watch it, Mr. Peevee might get the dog catcher after him. Ha, ha, ha! It wouldn't surprise me if Mr. Peevee sent the dog catcher after your uncle. Man, he's pretty sore, Uncle. Gosh, I sure hate to lose the dog. Ha, ha, ha! Oh, no, sit still, boy. Oh, well, I don't think you lose the dog. I don't know. I tried to get Uncle Mr. Peevee to talk to each other over the phone, and they got mad at each other all over again. Leroy, I think this fat's gone far enough. Don't you? I sure do. I think it's time Leroy brought a couple of gentlemen to their senses. Oh, boy, what ya? You come over to my house about three o'clock. Your uncle and Mr. Peevee will be there. They will? I'll phone Mr. Peevee and have him make a delivery from the pharmacy. And then I'll call your uncle and have him drop by. Oh, how do you know they'll come? Leroy, you're just a boy. But I assure you, when Leroy calls, they come. Ha, ha, ha! Miss anything? I wondered who was at my back door. Me? Thank you. I'm serving tea later. Would you like milk? Okay. Oh, that must be Mr. Peevee. I didn't want him and your uncle to arrive at the same time. Heck no, you'd never get them in the house. Excuse me, Leroy. Sure. Good afternoon, Mrs. Anton. Hello, Mr. Peevee. Hello, Leroy. Come in, Mr. Peevee. Thank you, but I'd better get back to the pharmacy. Here's your package of sundries. Would you mind bringing them inside and putting them on the table? Well, you're not heavy. I'll bring them in. Oh, I get it. Just take them in the parlor, Mr. Peevee. Very well. Now, let me see. If I can find my purse, I'll pay you. Oh, I've already put it on your account, Mrs. Anton. Oh, well, I want to pay this in cash, Mr. Peevee. You just wait a minute. Oh, now, where's my purse? Everybody look for my purse. Aren't you holding it behind you? So I am. I'm getting so rattle-brained. Graces. I don't seem to have any money in my purse. Well, I guess I'll have to charge it after all. Oh, that's perfectly all right with the pharmacy. Yeah. Goodbye, Mrs. Anton. Leroy. Mr. Peevee, before you go, would you do me a favor? Glad to. Well, I've just been waiting for some strong man to come along and help me move my piano. I want to put it over on the other side of the room. Well, yeah. Well, let's try it there. And if it doesn't look right, we can move it down to the other end of the room. Something told me to stay in the pharmacy. I wonder who that can be. Yeah, I wonder too. Excuse me, Mr. Peevee. Well, hello, Leroy. Rockmoreton, come in. Yeah, thank you. Leroy and a friend of yours would just move in the piano. Well, getting ready to sing? I'm not singing with you. Peevee, I didn't know you were here. I'm just leaving. Well, Mr. Peevee, you can't leave Nile. Yeah, I can. Now you just stop that pout and you cutely love mine, you. Oh, my goodness. Let him go, Leroy. Now go and I get good and ready. Now you two boys, just stop acting up. Well...  Oh, brother, now I know what they mean by wrapping men around their fingers. Now, where do you want the piano, Mr. Granton? Oh, well, let's leave it right here since you two have made up. Who's made up? I don't understand.  Stop staring at your toes and answer me. Right. And you, Throck Martin. Well, perhaps we should shake hands, Peevee. Well, there's no use losing a good customer, I guess. Put her there, Peevee. Oh, boy. Now everybody's happy. Yeah, you're acting like a couple of jolly boys again. You bet. Peevee, you remember those old jolly boy songs we used to sing? I'm here to tell you. Lila, sit down at the piano. Peevee and I'll show you how singing should be sung. All right. What'll I play? How about there is a tavern in the town? No. No, Peevee. How about smiles? We're all smiling now. Well, I'm not hard to get along with. Here we go. There are smiles that make you happy. There are smiles that make you blue. There are smiles that seal away the sunshine. And the sunbeams seal away the dew. Take it, Peevee. There are smiles that have a tender meaning. That the eyes of love alone can see. We're all together now. But the smiles that fill my heart with gladness. Are the smiles that you get. Oh, boy, George, that was great. What was that? I tied the dog up outside. It didn't want him running around chasing your cat, Peevee. My cat's outside asleep in your car. It was asleep. I'd better get out there. Peevee bringing your cat was a silly thing to do.  Oh, here we go again. All right. Let's hurry, Lila. I'm sure the dog chased the cat back to the drugstore. Gosh, Mr. Peevee took off in his car so fast he didn't even give us a ride. Well, this would have to happen just when Peevee and I had made up. What do you suppose he'll do if he catches the dog? I guess you couldn't blame him if he did send him to the pound. Probably already call the police to come and get him. Let's turn up the alley. Hey, look, honk! Uh-oh. Peevee's got our dog all right. What's he doing to him? Oh, my goodness. He's sticking a bandage on his nose. Peevee, what did you do to our dog? Oh, hello, Mr. Gildestine. Can you go and send him to the pound, Mr. Peevee? No, Lila. The dog can come around here as often as he wants to. Yeah? But I doubt if he wants to. Oh? He'd find me caught up with the cat. Well, that'll teach him. The great Gildestine will be right back. Next time you're shopping, pick up a pound of Kraft's new park game, Argyron. On the package, you'll see a truly remarkable offer. A chance to get famous powers model nylon stockings at half price. They're 51-gauge, 15-ginear nylons and guaranteed first quality. And you can get them for just 75 cents with the yellow end flap from a parquet package. Get parquet tomorrow. Kraft's delicious new margarine that spreads smoothly even when ice cold. Yeah, Floyd's at the can already. Hello, Floyd. Peevee. Good evening, Mr. Gildestine. Right, George. It took a good dog and cat fight to get the Jolly Boys together again. How's the pooches now? Oh, fine. I got the dog tied outside. Where's the chief and the judge? No, we got all the good voices here. Let's start singing. Oh, Peevee. Let's warm up an old mill stream. All right. Great. Here we go. Come by the old mill stream with your best in game. Right, George. Fellas, we never sounded better. My goodness. Good night, folks. Kate Gildestine was played by Willard Waterman. The show is written by John Elliott and Andy White, who is partially transcribed. Included in the cast are Walter Tetley, Lillian Randolph, Arthur Q. Bryan, Jack Meakin, Shirley Mitchell, Pinto Kahlvig, and Dick LeGrand. Musical compositions by Jack Meakin. This is John Heaston saying good night for the Kraft Foods Company, makers of the famous line of Kraft quality food products. Be sure to listen in next week and every week for the further adventures of the great Gildestine. Good cooks know that the fresher the salad oil, the smoother the French dressing. The fresher the cooking oil, the better the cake. And now Kraft oil is guaranteed to reach your kitchen as wonderfully fresh as it was the minute it was bottled. That's because Kraft oil and only Kraft oil is sealed with an airtight vacuum cap. Get Kraft oil tomorrow with confidence that it's the freshest oil you can buy. Tonight Play You Bet Your Life on NBC.


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