Controlled Group Coverage Q & A

Which employer should offer coverage when you have a shared employee among an Applicable Large Employer (ALE) member/controlled group?

A couple facts: (1) The employee worked hours for two separate companies which were part of a controlled group. (2) The individual’s hours when considered between both companies, made him eligible for an offer of insurance.

Response: The rules state that he is the employee of whichever company he worked more hours for each month.  If he worked the same amount of FT hours for each company each month than the companies need to determine which one will consider him a FT employee.  If they cannot make that determination the IRS will.  He will not be listed on the other company’s 1095-C.  Keep in mind if he worked FT for one company for the first two months and then FT for the other company for the next ten months, he would receive two 1095-C’s.