COBRA eligible due to work reduction payment via payroll deduction

denmcc

This is my first experience where a COBRA eligible employee has become eligible due to a reduction of their hours, rather than due to a resignation or having been fired. Can their premium payment continue to be a pre-tax payroll deduction?

Still Need Coffee

For this, you need to look at your Section 125 plan documents (also called POP - premium only plan - or cafeteria plan). The plan docs should say whether COBRA premiums can be included as a pre-tax benefit. If you don't administer your Section 125 plan yourself, I'd check with your benefits broker, who more than likely has some hand in it.

Let us know what you find out!