What if I form other businesses to keep my number of employees below 50 or 25 to get around Obamacare? If I start another related business with a different ownership group will the government look at these related but separate businesses as one? These are the million dollar questions of the day and here is deal, as of today.
There are many unknowns here and the people with some knowledge about it recognize that any loopholes in Obamacare could be addressed and closed by the government. So if you are wondering how your business can avoid the additional costs associated with this law you would need to take a very close look at any possible workarounds and the related costs and complexities they would add and the very real possibility that the regulations will be changed to close any perceived loophole(s). I do not see where anyone knows if the government would look at related business with similar but different ownership groups as one combined business for the sake of determining the number of employees as related to Obamacare . It seems the speculation is that the workforces could be combined for the purposes of the health care law. Repeat, could be, for emphasis that there are so many unknowns that we are dealing with here.
Here are some articles I looked at for my research and relevant highlights:
Here is an article addressing what seems to be a work around. However, it is acknowledged in the article that regulations could change to close any loopholes.
“We’re dealing with things that don’t exist but have the theoretical possibility of existing,” Christiansen adds. “Right now, we have as the default employer-employee relationships, but that whole paradigm is potentially problematic as we have more and more restrictions imposed by government.”
So the answer to your question is likely unknown and even if it is known or becomes known it is likely to change so be careful about decisions that lock you into added costs and complexity. My faithful readers know I value lifestyle choices that minimize complexity and stress. But that is just me. For you make sure you count the cost and know the existing and possible new risks moving forward. And that is all I have to say about that…for now.
Jeff Haywood, CPA
The CPA Superhero
This article was written by Jeff Haywood, CPA.
Jeff is a licensed CPA in Texas
He has prepared income tax returns for the public for over 10 years.
He also has an MBA in Finance from Loyola University in Chicago and he has 24 years experience in Corporate Finance and Business Analysis.
I prepare the following types of tax returns:
Federal and State Returns
In addition here are links to a few of my articles about income taxes for expatriates:
For a full list of prior posts see the CPA Tax Blog.
As always keep in mind that the content provided on this site is general in nature and may or may not apply to your particular case. It is best to check with a tax professional about your circumstances and what is best for you personally. Also, IRS regulations and tax laws are constantly changing and the information on this site is not constantly updated. Again please check with me about your particular circumstances and what will be best in your situation at the given time and law.
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