can we keep terminated ee's on payroll for medical and other H&W bene's??

welcome · April 2011

We're in MA and I've heard of this being done before but it sounds questionable. Can we keep a terminated employee on our payroll to pay severance and keep them on our medical and dental plans?? is this just a LOA?

ACU Frank · April 2011

What do your plan eligibility guidelines say? Is there an hours worked requirement?

davids · April 2011

We have essentially accomplished what you are trying to do by paying COBRA for the ex-employee. We couldn't keep them on the insurance plan if they were no longer an employee, but nothing prevented us from paying their COBRA payments for the agreed upon number of months.

sonny · April 2011

I think David is on track as usual. . pay the severance lump sum and COBRA. We did this once but I didn't like it. . what is liability while still technically on your payroll? what if he gets injured etc. .

Cheryl S SPHR · April 2011

I agree with everyone -- end the employment relationship cleanly. Anything extra you want to pay (premiums, etc.) is best given in a lump sum payout with the final payroll. There are too many issues that can be created by keeping folks on payroll who are not truly working.

welcome · April 2011

thanks everyone!

can we keep terminated ee's on payroll for medical and other H&W bene's??

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