Multiple Employer or Controlled Group?

[Guest Denise Serra]

What's the difference between a Multiple Employer or a controlled Group of Employers? Do different Employer Idenitication Numbers for the respective Employers have anything to do with making a distinction

[Bill Ecklund]

In the benefits field, a "controlled group of corporations" usually refers to corporations (defined in IRC section 1563(a)) which are aggregated together for such things as applying discrimination rules, determining withdrawal liability, coverage rules, etc. They are corporations whose employees are treated as being employed by one employer, by reason of being brother-sister or parent-subsidiary corportions (see sec. 1563 for the technical requirements). "Multiple Corporations" may include a controlled group of employers, but doesn't have to. A "multiple employer plan" is a plan to which more than one employer contributes. The coprorations may or may not be related. A "multiemployer plan" is a plan to which more than one employer contributes by reason of a collective bargaining agreement. Different employer ID numbers would be expected to occur and do not have anything to do with the definition.