Are Owners Included in the ACA Employer Mandate?
Most Owners may be excluded from the full‐time equivalent calculation. Owners that may be excluded include:
- Sole proprietors
- Partners in a Partnership
- Members of LLCs taxed as a Partnership
- Shareholders who own two percent or more in an S Corporation
It is important to note that if an Owner is involved with more than one business, it is possible that the businesses must be considered a “controlled group” or “affiliated services group” under the IRS Code. If so, the multiple employers would be viewed in aggregate and the number of full-time equivalent employees in all of the related organizations must be totaled when determining if the organization is a covered employer for the Employer Mandate.
How APS Can Help
APS offers several tools and features to help you manage ACA compliance, such as tracking benefit enrollment and health care coverage information reporting. Learn more by downloading 8 Ways to Manage ACA Compliance with APS.
This information is excerpted from Navigating the Employer Mandate, a comprehensive ACA resource for employers. Download the full guide here.
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