Employment Contract term ends...

[Oh so SIMPLE]

Company contracts for employee's services for a one year period of time. At the end of one year, the employee is not offered any other position. The employment comes to an end.

Is the employee entitled to the subsidized COBRA premium?

[Guest sniffles]

Company contracts for employee's services for a one year period of time. At the end of one year, the employee is not offered any other position. The employment comes to an end.

Is the employee entitled to the subsidized COBRA premium?

If you are not renewing their contract it sounds like an "involuntary job-loss" to me and therefore subject to Cobra and the subsidy.

[Oh so SIMPLE]

Company contracts for employee's services for a one year period of time. At the end of one year, the employee is not offered any other position. The employment comes to an end.

Is the employee entitled to the subsidized COBRA premium?

If you are not renewing their contract it sounds like an "involuntary job-loss" to me and therefore subject to Cobra and the subsidy.

The 'loss' part is what I am having trouble with. If the employee only had the job for a year, that's all that was contracted for from the beginning, when the year runs out has he 'lost' a job or simply his job ended? All he had from the get-go was a job for a year. The year passed. The job ended. It was not like he had an indefinite period of employment that was terminated for reasons beyond his control.

[GMK]

check out AE-28 here:

http://www.irs.gov/newsroom/article/0,,id=205364,00.html

employee hired for a limited period, such as a seasonal worker. At end of term, if employee would continue working, but the employer says there's no more work, it's involuntary.