Q.- We had to reduce hours for several employees which caused them to lose health coverage. Can we help them out by paying their COBRA premiums?
A.- Yes, but consider how you structure the payment so it is not taxable to the employee. You can give them cash to pay the premium (which may be taxable), you can ask for a copy of their payment for reimbursement (which may not be taxable), or you may pay the carrier directly on their behalf (which may not be taxable).