COBRA provision in new stimulus plan
Caroliso
352 Posts
Anyone know enough about this provision to offer an opinion or direct me to a resource on the provision requiring employers to subsidize 65% of COBRA for laid off EES, in exchange for a payroll tax credit?
1. We are a project-based nonprofit, and in our business staff leave if they run out of funding. Either the project ends, or their role on a project ends, and if they are not picked up by another project their employment is terminated. Sounds like a layoff to me, is it for the purposes of the new provision?
2. What about people who remain employed at our company but reduce their time, due to lack of work, below the threshold for eligibility for the health plan? Below 50% of full time, they have to elect COBRA if they want to remain on our plans. Are they considered laid off for the purposes of the new provision?
Thanks.
1. We are a project-based nonprofit, and in our business staff leave if they run out of funding. Either the project ends, or their role on a project ends, and if they are not picked up by another project their employment is terminated. Sounds like a layoff to me, is it for the purposes of the new provision?
2. What about people who remain employed at our company but reduce their time, due to lack of work, below the threshold for eligibility for the health plan? Below 50% of full time, they have to elect COBRA if they want to remain on our plans. Are they considered laid off for the purposes of the new provision?
Thanks.
Comments
I see there are already webinar's available. We are going to contact COBRASERV
Am sure there will be much more info to come, but I believe it is effect 3/1. . Plenty of time to figure it out. .
Nae