COBRA
Who must comply?
An Employer who offers a "group health plan" and has 20 or more employees for 50% of its typical business days in the preceding calendar year is required to provide COBRA continuation coverage in the following calendar year. Some notes:
- The COBRA employee count is based on a calendar year basis, not the Plan Year or other 12 month period elected by the Employer.
- The employees that are counted are defined as "common law employees" by the IRS.
- Part-time common law employees are counted as a fraction of a whole, with the number of hours worked over the number of hours required to meet the definition of a full-time employee. If you do not maintain a written definition of a full-time employee HFS recommends using 40 hours per week as the denominator.