Q.- We employed 10 full time employees and 5 part time employees at the end of 2017. In July 2018, we hired our 20th full time employee. In August, an employee who was on our health coverage quit. Do we have to offer him COBRA?
A.- No. An employer is subject to the federal COBRA rules if the employer normally employed 20 or more employees on a typical business day for 50% the preceding calendar year. Since you did not have 20 or more employees in 2017, you are not subject to COBRA in 2018. You will have to look at your employee count at the end of the year to determine if your company will be subject to federal COBRA in 2019. However, many individual state laws require that employers who employed less than 20 employees for 50% of the preceding year offer continuation of coverage following certain events, such as termination. BAS’ COBRA services through its subsidiary, Cobra Control Services offers State Continuation administration for many states. Please contact your account manager for more information.