The new health reform law gives a tax credit to certain small employers that provide health care coverage to their employees, effective with tax years beginning in 2010. Over the next several weeks, Vision Payroll will be providing further information on the Small Business Health Care Tax Credit. Today’s topic is Employers in a Controlled Group or an Affiliated Service Group.

The aggregation rules of §414(b), (c), (m), and (o) apply so that controlled groups of corporation, businesses under common control, and affiliated service groups will be treated as a single employer for this purpose. Therefore, all employees of the controlled group or affiliated service group, and all wages paid to employees by the controlled group or affiliated service group, are counted in determining whether any member of the controlled group or affiliated service group is a qualified employer.

The next topic to be covered in this series is Claiming the Small Business Health Care Tax Credit. Contact Vision Payroll if you have further questions on Employers in a Controlled Group or an Affiliated Service Group.