Small Group Vs Large Group

[deathbyaca14]

We currently don't have any large group as the area we live in doesn't have many businesses that size.

However one of our clients owns 2 businesses. They are currently considering the possiblity of merging the 2, which would make them a large group they are about 35 & 42 respectively. Which as I understand would make them a large group in 2014 but then a small group again in 2015 as the number gets pushed from 50 to 100, correct?

I want to make sure I have all my ducks in a row as far as fee's and things or penalties that they should all be aware of when considering which route to take.

 

[Ann H]

Even before the companies merge, the owners most likely have common ownership, which means they must aggregate the number of employees in order to count them.

Here is a link to a relatively simply written article about the play or pay issue, and it also links the IRS rules for controlled groups.

PPACA: Employer Pay or Play Mandate

 

[leevena]

We currently don't have any large group as the area we live in doesn't have many businesses that size.

However one of our clients owns 2 businesses. They are currently considering the possiblity of merging the 2, which would make them a large group they are about 35 & 42 respectively. Which as I understand would make them a large group in 2014 but then a small group again in 2015 as the number gets pushed from 50 to 100, correct?

I want to make sure I have all my ducks in a row as far as fee's and things or penalties that they should all be aware of when considering which route to take.

I am a little confused about your question, so I will guess, sorry.

There are many issues and possible costs that will be associated with the merging of two seperate companies. Keep in mind though, that PPACA already addresses this issue within the controlled groups and affiliated service group guidelines. Essentially it says that if the employer meets the aggregation rules, that employer must combine both groups enrollment numbers. So even if the employer kept these two groups seperate, PPACA would recognize them as a 77 life group.

These rules are too complicated to address here, but there is probably a high probability that this is a 77 life PPACA group. Controlled groups include; brother-sister (very detailed and must meet various requirements), parent-subsidiary (one company owns 80%+ of another), and combined. The tests can become very complex.

Does this help?

 

[deathbyaca14]

Even before the companies merge, the owners most likely have common ownership, which means they must aggregate the number of employees in order to count them.

Here is a link to a relatively simply written article about the play or pay issue, and it also links the IRS rules for controlled groups.

Reading the government Doc from the IRS is like reading spanish.

Do we have that in an article somewhere else that might spell that out a little easier for me to show the clien that because they are common controlled you have to be shown as 1 as far as the health plans go?
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I think I may have found it.

 

[Ann H]

Reading the government Doc from the IRS is like reading spanish.

Do we have that in an article somewhere else that might spell that out a little easier for me to show the clien that because they are common controlled you have to be shown as 1 as far as the health plans go?
- - - - - - - - - - - - - - - - - -
I think I may have found it.

Like Leevena said, it is a complex issue. For the most part, if they are a controlled group, they know it already. Their accountants can tell them in a heartbeat. In most cases it is difficult to own 2 businesses and yet skirt the "controlled group" definition.

 

[deathbyaca14]

Like Leevena said, it is a complex issue. For the most part, if they are a controlled group, they know it already. Their accountants can tell them in a heartbeat. In most cases it is difficult to own 2 businesses and yet skirt the "controlled group" definition.

Hmmm...complex indeed.