#lnyhbt #tcot #teaparty Planning on splitting your company of 50 employees into 2 companies with 25 employees to avoid the $2,000 Obamacare 'Robert's Tax'? Think again.
If you are an employer you can not get around the Obamacare ‘Roberts Tax’.
Let’s say your an employer with 50 employees and you decide the best way to avoid the $2,000 Obamacare "Robert's Tax" is to split up your company into 2 separate companies with 25 employees each. Great idea! The only problem is the statist attorneys who helped craft Obamacare already thought of that.
The IRS will still consider both of your companies as one company. That’s because the ‘Robert’s Tax’ relies on “controlled group” provisions. These provisions focus on who controls the company. If you are the named owner of those 2 companies, the IRS will combine all employees under both corporations and hit you with the ‘Robert’s Tax’.
“Controlled group” provisions are meant to prevent skirting around the law” said Christopher Condeluci, a Washington D.C. attorney at the law firm Venable who helped draft the rule for the Senate Finance Committee. “These rules are intended to snuff out this type of abuse,” Condeluci said. “You cannot get around the employer mandate.”
Let’s say your a business owner who employs 50 or more employees at completely different companies. You have 25 employees at a car repair shop and 25 at a restaurant. You would have to provide insurance or pay the “Roberts Tax” at both, even though each or your separate company has less than 50 employees. Again, it’s the named owner of those combined companies that the IRS looks at under ‘controlled group’ provisions.
Worse yet, Married couples may also find themselves impacted by ‘controlled group’ provisions, since IRS law generally assumes an individual owns interest in their spouse’s business. Oh, it’ just keeps getting better doesn’t it?
Learn more: http://csteventucker.wordpress.com/2012/11/16/governors-can-and-should-stop-the-obamacare-exchanges-at-the-state-level/