Affordable Care Act Related Question

[deserttax]

These are fun times, fun times. Anyway, I digress. Does anyone know if multiple S corps, operating exclusively of each other, that are owned by the same shareholders, fall under the definition of a "Large Employer" or "Controlled Group" for the purpose of determining the amount of employees - 50 or more - for being required to offer health insurance? Apparently, section 414 (b), (c), (m), or (o) dictates this but I'm still not sure after my research. These are separate dental offices, each operating under their own S corp where each S corp is owned by three dentists.

Any suggestions or reference would be much appreciated.

Thanks in advance.

[Snaggletooth]

Not Supposed To

From what I've read separate companies with common ownership are "not supposed to" be able to thwart the mandate. Having said that, they just might pull it off, but the general spirit of the law makes them responsible.

However, I DO look for companies to be able to create complex ownership groups, i.e. imbedded corporations with sufficient minority interests, comity agreements amongst distinct different owners, etc., and essentially escape the 50-employee rule.

Not to mention the latest corporate craze, cutting back their personnel to 30 hours per week, even if it means hiring more headcount. And the clincher: silent-and-under-the-table agreements for employees to REFUSE coverage in return for a $700 raise.

Simply put: If the framers of Obamacare really wanted to bring "affordable" health care to the masses, they should not have had Corporate America in the back room helping to write the law with all its escape hatches.

[AZ-Tax]

Potentially going from W-2 to 1099-misc

I have one MD who in 2012 was offered a major raise if he went from a W-2 to a 1099-misc. He took the 1099-misc, created an LLC and elected S-Corp tax treatment. I then got into payroll. Now I have PA (Physcian Asst) who is currently W-2, is being offer a major raise if he takes 1099-misc. The PA is telling me more and more Medical Groups are offering their MD's & PA's major raises if they elect 1099-misc. This could be great potential future business especially if you also market health insurance and investments (retirement plans). I think the ACA in part made this happen due to Guaranteed issue health insurance and the health insurer can no longer drop your coverage.

[Roland Slugg]

First of all, forget the fact that the corps have elected S Corp status for tax purposes. They are corporations. And yes, companies under common control do have to be treated as a single employer when applying the new health coverage rules. This topic has been covered here before, and a search should lead you to those previous posts.