Saturday, November 5, 2011

As an CA Small Business employer am I responsible for paying my employees cobra benefits? -

I am a CA small business owner with less than 20 employees. Do I pay all (my employee I have to lay off) of her monthly cobra benefit premium? and if so for how long? and what can I expect to pay each month (what do they base the premium on)?

Landlord is correct. It is not your responsibility to pay for your former employees COBRA.The employee remains a part of your plan but pays for the entire cost of her plan. Both her contribution, and the portion that you were paying for her. The premium should not change, but the premium is 100% the employee s liability and responsibility to pay. The second she misses a payment coverage will stop. You should contact your plan provider or your insurance agent. Or if you have someone that does your payroll and HR benefits, let them do it. This is part of their job and something they need to learn. The insurance company also needs to know the date of separation and that she ll be on COBRA.

No, you do not pay anything. Cobra is employee paid, they pay for their own benefits between jobs. She pays and her premium is based on whatever plan you had for her, she continues on the same plan.

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