Is a subsidiary company with fewer than 50 full-time employees exempt from the employer shared responsibility requirements of the Affordable Care Act (ACA)?
Author: Brian G. Muse, LeClairRyan
No. Under the ACA, two or more companies that have common ownership, or that are otherwise related, are generally combined for the purpose of determining whether an employer has 50 or more full-time employees. If the total number for all related employers equals or exceeds 50 full-time employees, then each subsidiary company is subject to the employer shared responsibility requirements under the ACA even if a subsidiary employs fewer than 50 individuals.