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Q: I employee 5 people on a full time basis, the number of part time employees vary monthly up to 40 people and may only work from 2 hours to 39 hours, once a month. How do I calculate the 40 part time workers hours into a fraction of an employee to determine if I have more than 20 employees? From my calculations there has only been 3 months that I actually had 20 employees based on the fractions which are not 50% of the typical business days. Am I required to offer COBRA to employees who are lay-off?
A: Plan Coverage - Group health plans for employers with 20 or more employees on more than 50 percent of its typical business days in the previous calendar year are subject to COBRA. Both full and part-time employees are counted to determine whether a plan is subject to COBRA. Each part-time employee counts as a fraction of an employee, with the fraction equal to the number of hours that the part-time employee worked divided by the hours an employee must work to be considered full time.
You can get this information at http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.html if you have further questions pertaining to figuring this out I recommend calling the Department of Labor, they oversee the Cobra law. 866-444-3272
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