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Common Ownership

Common ownership, or controlled group rules, can combine related businesses into a single employer for benefits and ACA purposes. This affects employee counts, ALE status, and nondiscrimination testing.

How do common ownership and controlled group rules affect ALE status?

June 29, 2026 by HealthInsuranceFAQs

Businesses under common ownership can be treated as a single employer. For the ACA, all employees of a commonly owned group are combined to test the 50 full-time-equivalent threshold for ALE status, though each company stays its own ALE member for penalties and reporting.

Categories Compliance Tags Applicable Large Employers (ALEs), Common Ownership

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