What are affiliated service groups and affiliated management groups?
In certain instances, companies that do not have interlocking ownership must be aggregated for testing purposes. Affiliated service groups and affiliated management groups are organizations related through specific service or management functions. If your company regularly performs services or management functions primarily for a small number of other companies, you may have an affiliated service group or affiliated management group. If a company fails to offer plan benefits to part of an affiliated service group or affiliated management group and does not pass the required minimum coverage tests, they must pay mandatory contributions for the employees who were excluded from the benefits of the plan. If you think one of these situations may apply to your company, contact the Compliance and Technical Services Department at Pinnacle Financial Services.
Related Questions
- Medical Billing service owns practice management software, doctor has an appointment scheduler integrated with the Medical billing service software?
- Does American Management Corporation only provide insurance for retail service stations?
- What are affiliated service groups and affiliated management groups?
