COMMON OWNERSHIP/AFFILIATED COMPANIES

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Carrier

Guidelines

Groups who have more than one business with different TINs may be eligible to enroll as one group if the following are met:

• One owner has controlling interest of all businesses to be included}
• Companies that are affiliated and that are eligible to file a combined income tax return for purposes of state taxation shall be considered one employer
• All groups filed under one combined tax return are considered one group
• There are 100 or fewer employees in the combined groups
• Business with equal controlling interest may be considered if the owners of the company designate an individual to act on behalf of all the groups
• A completed Common Ownership form must be submitted
• Underwriting reserves the right to final underwriting review and may consider common ownership on a case-by-case underwriting exception

Companies that are affiliated and eligible to file a combined tax return for purposes of state taxation shall be considered one employer

A letter from the employer’s CPA which states the groups are eligible to file consolidated tax returns is required

Common ownership groups must meet the definition of a small employer when combined

Copies of Articles of Incorporation/Partnership Agreements are required for each group Common ownership groups must meet the definition of a small employer when combined

Groups leaving a PEO on the enrollment effective date must provide:


Explanation from the employer with a description and date of the PEO split-off scenario

• One week of payroll from the new payroll company with the balance for the month due within 30 days of the effective date

Each company must share a minimum of 50% common ownership

Companies must have a related industry (The groups would be able to file payroll taxes jointly)

The total number eligible for all combined groups may not exceed 100

Completed Common Ownership Statement

Proof of related industries may be required by the Underwriter

Small employers qualified to enroll as a single employer are required to submit a letter from a CPA certifying how they are eligible

The CPA must not be an owner or employee of the groups seeking coverage

The letter must be on CPA letterhead and it must explicitly state how the groups are eligible to enroll under a single policy

Allowable reasons for how common ownership groups are eligible to enroll under a single policy:

• Affiliated companies that are eligible to file a combined tax return for state taxation

• Controlled groups of corporations

• Trades and businesses, whether or not incorporated, under common control

• Affiliated service groups

Common ownership groups must meet the definition of a small employer when combined

Business entities that are affiliated and eligible to file a combined tax return for purposes of state taxation will be considered 1 employer and must apply as 1 employer

Common ownership groups must meet the definition of a small employer when combined

Copies of the filed/stamped Statement of Information reflecting all officer/owners, or signed/dated Partnership Agreements listing all partners’ names

A letter from the employer’s CPA stating that all business entities are eligible to file a combined tax return

Submission of a completed and signed Common Ownership Certificate form