Are companies that are related or that have a common owner combined for the purpose of determining large employer status under the Affordable Care Act?

Author: Tracy Morley, XpertHR Legal Editor

Yes. Companies under common ownership or control are combined for the purpose of determining whether or not they employ at least 50 full-time employees (or an equivalent combination of full-time and part-time employees). If the combined total meets the threshold, then each separate company is subject to the pay or play requirement, including companies that individually do not employ enough employees to meet the threshold.

While related or commonly owned companies are aggregated for the purpose of determining whether an employer is subject to the pay or play provision, each company is considered a separate entity for the purpose of calculating and applying the pay or play penalty.