The Business Aggregation Rule - Donna Baker

Brent Mercer introduced Donna Baker of Donna Baker & Associates (the same firm he works for) and chair of the Accounting Department at Siena Heights University who spoke to us today about her term on the federal government's  IRS Advisory Committee some three years ago along with 29 other people in Washington D.C. She was required to fly there 5 times each year for 3 years to meet with the committee.

She completed her term last December but mentioned that a fellow-committee member was asked to testify before the House of Representatives on an element of the Affordable Care Act (specifically the Business Aggregation Rule) and, knowing Donna owned a number of small business, asked her if she would accompany her to testify which she agreed to. 

The Business Aggregation Rule which is now part of the US Tax Code, she explained, was actually in existence as far back as 1964 and folded into the ACA. It applied to retirement plans for small businesses to essentially guard against discrimination. This rule, now applied to the ACA requires small businesses with the same owner to “aggregate” the number of employees and if that total is 50 or more, the owner is required to provide health insurance to all employees.

Since Donna currently owns an accounting business, a payroll firm, and a retail store, she did not really object to the requirement until the government required her to figure her husband’s dairy farm into the mix! Her husband currently has a 50% share in the business with his brother. Donna said she is in no way associated with the farm yet the federal government wants them to add his employees to the ones working at her businesses simply because they are married and therefore provide health insurance coverage for them all starting in 2015 or pay a penalty!

Donna concluded her presentation by asking Brent to play the audio clip of her interview by Fox TV News Channel expressing her objections to this rule. Her photo from that interview is shown in the upper left.