We are paying for a former employee's COBRA coverage. Normally, the carrier would bill us, and a third party associated with the carrier would bill the former employee and that third party would reimburse us.Any ideas?
All that is occuring in this case, but in addition, we are reimbursing the employee for the amount the third party is billing. This employee is also receiving severance checks through our payroll.
Would the COBRA reimbursements be subject to payroll taxes, workers comp, etc.? Currently, we are paying the COBRA out of A/P as a separate check from the severance payroll.
Materials, resources and information related to the California Association of Nonprofits' finance and accounting programs and CAN's Accounting Boot Camps.
Friday, August 04, 2006
Question for all you readers out there
From an email that was forwarded to me:
There are no such thing as payroll taxes for a non-employee. You would file a 1099 instead.
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