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How is the COBRA subsidy calculated if a severance program has the employer paying 100% of the cost for a specified period of time?

April 26, 2017calculated COBRA COST employer paying program severance subsidy

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How is the COBRA subsidy calculated if a severance program has the employer paying 100% of the cost for a specified period of time?

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The COBRA subsidy under the law does not apply until the employee begins paying 35% of the premium. If the employee is paying nothing, then there is no subsidy for the employee or payroll tax credit for the employer.