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smollstub13
May 26, 2020
Question

Continue paying health insurance premium while employee laid off?

  • May 26, 2020
  • 1 reply
  • 0 views

Hello,

What is the proper way to continue paying my employee's health insurance premium while they are laid off?  ROE has been completed, and employee shows as 'released'.  The agreement was that we would continue to pay half of her benefits while she is laid off....but not sure how to do this in the payroll system so it will still count as a taxable benefit.  Ideas?

1 reply

LeithG
LeithG
March 31, 2021

Hi smollstub

 

Once the person is no longer an employee, you cannot pay them a taxable benefit.

 

Prior to layoff, determine the amount for which you will reimburse them (premium x months x 50%) and issue one lump-sum additional payment, withholding any taxes as necessary, and adjusting the ROE as necessary.

 

After the fact, you should still be able to do so as outlined above.

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smollstub13Author
March 31, 2021

Thank you for this reply....however, not very useful to me now since my question was posted close to a year ago.

LeithG
LeithG
April 1, 2021

Hi smollstub!

 

I didn't even see the date on the posting, just that it had remained unanswered.  Were you able to eventually figure it out?  If your solution differed from the one I offered, can you post it here so others who encounter the same issue have some insight into your process?

It's too bad I didn't see/couldn't offer suggestions sooner, but maybe someone else can learn from your experience.

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