Affordable Care Act

The Basic Facts

Production Company is the Employer

Under the ACA, the common-law employer is the employer for offering benefits.  Section 31.3121(d)-1(c)(2) of the regulations provides that the relationship of employer employee exists when the person for whom the services are performed has the right to direct and control the individual who performs the services not only as to the result to be accomplished by the work, but also as to the details and means by which that result is.

Therefore, between the payroll company and the production company, the production company is the common-law employer for the purposes of the ACA, as it solely directs and controls the employee..

Accordingly, the ACA requires that the production company meet all requirements for communications and notifications due to employees.