A “controlled group” of companies may exist when there is overlapping ownership in two or more companies. There are two kinds of controlled groups: a parent-subsidiary controlled group and a brother-sister controlled group. A parent-subsidiary controlled group exists when one company owns 80% or more of a subsidiary. A brother-sister controlled group exists when 5 or fewer individuals own 80% or more of two or more companies. In some cases, ownership by a spouse, parent, child or grandchild may be combined to determine whether a controlled group exists. The census will ask the employer to provide information regarding other companies in its “controlled group,” and it is important that the employer accurately reports whether it is part of a controlled group in order to provide the census data needed for accurate testing.
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