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On the Move-April 24, 2015

MADA's 2015 Summer Business Convention is Two Months Away!

Registration materials will be available next week for our 2015 Summer Business Convention which will be held at The Hotel Hershey in Hershey, PA! The convention will be held from Sunday, June 28 to Wednesday, July 1. We are finalizing the event details and will have those to you next week when the registration materials are made available.

You won't want to miss our keynote speaker, Cory Mosley, whose down-to-earth presentation style make him a favorite among dealer principals and frontline sales team members at leading automotive retail conferences like NADA. A 16-year career consultant, Cory will present his "Lead the Next Generation" keynote, which focuses on leveraging the Gen-Y workforce, helping dealers move beyond old-school tactics to embrace new-school strategies that will lead to growing a successful Gen-Y dealership staff.

Also on the agenda-Spot Delivery. MADA successfully passed a new important law pertaining to spot delivery. This law requires dealers to provide a specific disclosure when performing spot deliveries, protecting you from plaintiff attorneys and MVA investigators that have tried to argue the illegality of spot delivery for years. Mike Charapp, of Charapp & Weiss, LLP, Peter Kitzmiller and Travis Martz will provide the essential information dealers need to operate within the confines of the new law to successfully deliver cars without fear of legal backlash.

We strongly encourage that you make your room reservations ASAP. MADA has a reserved room rate of $279/night at the hotel. Please call 1-800-HERSHEY and mention group code 2398578 to make your room reservations. The deadline to reserve a room is May 28th. You can also book online.

Due to the busy time of the year, the hotel strongly suggests that you make additional dining and/or spa reservations ASAP. The convention opens with Sunday's reception; should you like to make a dinner reservation in one of the hotel restaurants following the reception, please do so in advance. Anyone who would like to enjoy a Spa treatment at The Spa at the Hotel Hershey is also encouraged to book in advance, as well. You may call the Spa at 717.520.5888 to schedule your treatment!

We are very excited about this year's summer convention and we know that you'll have a fabulous time in June!

Thanks to Our Convention Sponsors!

MADA would like to thank and recognize those associate members who have agreed to sponsor the 2015 Summer Business Convention. Your support makes this event possible!

American Fidelity Assurance Company

ARMADA Dealer Services

CVR

Councilor, Buchanan, and Mitchell, P.C.

DealerTrack

SunTrust Bank

Title Tec

Zurich

We remind our dealers to please consider working with those companies who support your Association. If your company is not on the list above and would like to be a sponsor of the convention, please download and return the Sponsorship Form today!

Spot Delivery Bill Passes 2015 General Session

MADA's bill concerning spot delivery passed during the 2015 general session. The bill ends a long standing debate between MADA and the Attorney General and/or Plaintiff Attorneys regarding the legality of spot delivery. This legislation creates a clear legal mandate for spot delivery which requires dealers to provide a signed disclosure to customers. The law becomes effective October 1, 2015. Maryland is the 19th state to adopt rules regulating spot delivery. The FTC is pushing all states to enact specific regulations. To ensure that all of our members are knowledgeable about the impending changes and remain compliant with the new law, MADA will host a webinar on May 12th and will roll out the sample form at our 2015 Summer Business Convention in Hershey, PA.

MADA to Host Free 2015 Legislative Update and Spot Delivery Webinar

MADA and Michael Charapp, of Charapp & Weiss, LLP, will present a free webinar on Tuesday, May 12th at 11:00 a.m. which will cover the 2015 legislative session and the major changes coming on October 1, 2015 for spot-deliveries.

Please CLICK HERE to register for the free webinar today!

MADA Sponsors Salisbury Students at National Competition

For the fourth year in a row, MADA has sponsored two students, Ryan Dryden and Jimmy Wood, from Parkside High School in Salisbury, MD as they competed in the National Automotive Technology Competition which was held during the New York International Auto Show in New York City. Held over two days from April 6-7, the students competed against 30 other teams from around the country and Canada. The team placed 11th, with each student winning a $3,000 scholarship from Lincoln Technical Institute and a $2,000 scholarship from the Automotive Training Center.

Many thanks to Gateway Subaru who helped the students prepare in the weeks leading up to the competition. They opened their service department and assisted the students and their instructor, Dave White, as they learned all about the Subaru on which they would compete.

Jimmy Wood and Ryan Dryden with their instructor, Dave White, at the 2015 National Automotive Technology Competition.

IRS Releases New Fact Sheet on Employer Mandate Procedures

The IRS recently released a new fact sheet explaining the process the agency plans to use to administer the employer mandate under the Patient Protection and Affordable Care Act (ACA).

Beginning January 1, 2015, the ACA imposes two potential penalties- (1) a penalty imposed on employers that choose not to offer healthcare coverage to substantially all of their full-time employees, and (2) a penalty imposed on employers that offer coverage, but the coverage offered is not adequate or affordable under the law. Both penalties are triggered when any one full-time employee obtains health insurance through the Public Exchange Marketplace (Marketplace) and receives a premium tax credit.

The new IRS fact sheet details these two types of penalties and how they will be calculated. It sets forth how the penalties will be imposed month-by-month, and gives examples of how the penalties might be assessed in various scenarios.

The fact sheet also explains that employers will not self-report or calculate these employer shared responsibility payments. Rather, the IRS will calculate the potential penalty due and contact the employer. The IRS' determination will occur after employees have filed their individual tax returns for the year claiming any premium tax credits. After the IRS sends the calculation to the employer, the employer will have an opportunity to respond to the IRS before any assessment or notice/demand for payment will be made. The IRS will adopt procedures to ensure that employers are notified when an employee receives the premium tax credit for purchasing coverage through the Marketplace.

Employers should begin to think about the ACA and to prepare now, before an assessment or collection notice arrives from the IRS. Applicable transition relief, ACA safe harbors, and careful workforce planning can minimize or prevent employer mandate penalties. Thorough documentation will be an employer's best defense against an IRS claim that an employer mandate penalty is due.

This article is provided by American Fidelity. Please visit their website for a link to the fact sheet and more information about planning for the ACA's employer mandate.

Maryland Automobile Dealers Association
7 State Circle, Suite 301
Annapolis, MD 21401
(800) 526.7423 (Toll-free)
(410) 269.1549 (Fax)

www.mdauto.org