Question of the Week

Posted by BAS - 31 August, 2017

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Q.- We are a start-up company, created in April this year. We just hired our 21st employee. Do we now have to comply with COBRA?

A.- Not yet. To be subject to COBRA, a company must have over 20 employees for more than 50% of business days in the prior year. Since you had 0 employees in the prior year (you were not in business yet), you are not subject to COBRA in 2017. Keep track of your employee count this year, and you will have to calculate if you have over 20 employees for more than 50% of business days to determine if your company must comply with COBRA in 2018.

Topics: COBRA


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