Under the Affordable Care Act, companies who employ 50 or more full-time employees (or their equivalents) are subject to the employer shared responsibilities provision in the law. A recent addition of the IRS’s Tax Tips discussed the implications of this provision for aggregated companies (companies owned by the same individual or group).
The ACA states that if a collection of several smaller companies share common ownership, they are considered as a single or aggregated company for the purpose of determining responsibility under the employer shared responsibilities provision. Business owners or partners with multiple businesses with fewer than 50 employees separately, but with a combined total of 50 or more, would be responsible to meet this provision.
The IRS determines any applicable payments separately for each company included as part of an aggregated company, so it’s a bit more complicated than if you were dealing with a single larger company. If you have question about the possibility of your companies being combined into an aggregated company under this provision or the ACA or any other tax-related question, feel free to give me a call at 864.836.3136.