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COBRA premium payments

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Is it acceptable by law for COBRA insurance premiums to be paid in the form of a payroll deduction? An employee who went from full time to part time status is no longer eligible for the insurance but still receives a regular paycheck.

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  • HRforMEHRforME 497 Posts
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    They would need to be a post-tax deduction.  They don't get the benefit of the pretax qualified plan anymore. Also will their pay always be enough to cover the deduction? If not, you need to have a back up plan on payment.  And what happens when/if they terminate within the first 18 months. Make sure you have all the paperwork to prove the dates.
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