Question of the Week

Posted by BAS - 24 March, 2016

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Q.- Last year we were part of a very large company, but spun off on our own this year. We now have only 15 employees. Do we have to offer COBRA?

A.- COBRA provides an exception for small employers. An employer is not subject to COBRA for any calendar year if all employers maintaining the plan employed fewer than 20 employees on a typical business day during the preceding calendar year. You should consult with your legal counsel to determine if the small employer exception applies to your situation, based on the ownership structure of the company before and after the reorganization.


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