Jump to content

What to do about pre-tax payroll deductions when Employee is sick or i


Guest Ginny Rigsbee
 Share

Recommended Posts

I would go ahead and offer her COBRA. As papogi indicates, you have to take that you are setting a precedent into consideration. If she's a "good" employee you may want to work with her a little. Just realize whatever decision you make for this "good" employee is going to have to be the same for a "bad" one unless you want to take a chance of getting sued.

Link to comment
Share on other sites

Guest Ginny Rigsbee

Good Morning papogi and mroberts...sorry to beat this issue into the ground but I do want to do this correctly and you two seem to be the experts!! First of all...my employee needs to pay us for the month of June for her health insurance...is it perfectly legal and okay for her to just write the check directly to our business?

Second of all...her initial date of injury was May 6th...would it be relatively safe to hold on the COBRA issue until August 1st when she could possibly return? (that would only be 3 months) or do you think because of the size of this claim my carrier may already be flagging us to watch? If I do put her on COBRA and terminate her and then she returns do you simply take them back off COBRA once they have re-qualified for health insurance again? We have a 90 day waiting period for new staff. Hopefully this will wind up this issue!!

Link to comment
Share on other sites

Since you apparently have no rehire provision (she will have to satisfy the 90 day waiting period again), you stand to save her lots of money based on this COBRA decision. If she goes on COBRA she'll have to pay for three months of additional coverage in order to get through the waiting period. Conversely, she will simply come back on the coverage as an active employee once she returns if you are able to keep her off COBRA. As far as this particular employee, you'll have to make that call. Do you believe this employee will come back 8/1? Has she always been trustworthy? You could let her know that you will maintain this agreement until 8/1, then COBRA will have to begin at that point. That gives her some warning. I would be inclined to continue as is since it stands to save her a fair amount of money, thereby maintaining good employee relations. How the carrier might think, I'll leave that open to another person. I deal directly only with self-funded clients, so my experience with carriers is second hand.

Link to comment
Share on other sites

I don't believe the carrier is going to hassle you on this situation. Since we are talking less than 3 months total, you'll most likely be ok since many companies extend company contributions for medical insurance out past 6 months for employees on disability. I would just put it in writing to the employee and stick to the 8/1 date. At that point offer her COBRA. If she comes back, just slip her back on as an active employee.

Link to comment
Share on other sites

Guest Ginny Rigsbee

Great...that sounds like a good plan of action...she is very trustworthy and we also have a business relationship with her husband...he does our computer work. There is a good possiblity she could return by then..she is improving daily.

Did either of you have an answer as far as her going ahead and paying our company for June, July and August? Just want to make sure that is legal without involving a third party.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...