Based on my reading of the rule, I believe you are correct. A controlled group of corporations is based on the aggregation rules under Code ยง414(b), and I don't believe a corporation can be excluded, for this purpose, just because it has elected S Corp tax status.
Look also at the definition of a "full-time employee." It's basically one who works an average of 30 hours per week. The IRS and/or DOL may promulgate rules to determine hours of service, including how to figure hours for employees who aren't compensated on an hourly basis.
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Controlled Corporations
Situation is:
S Corp 100% owned by KT. KT also owns 80% of a C Corp.
From everything I read they meet the definition of a controlled group.
Therefore they have to aggregate full time employees from both corporations for the healthcare mandate starting in 2014. The C Corp by itself has over
50 full time employees.
Am I reading and understanding the rules correctly? I have to be positive and right because a lot of money rides on this.
Thanks,
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