Cobra Pemium Reduction w/ less than 20 employees?

[Ross]

I'm the controller for a small oil company which has only 12 employees. However, our related entity trucking company has 16 employees and another related management entity has two employees. Our health insurance is all on one policy for all 30 employees. However, we have three payrolls; I file three 941s each quarter.

We recently terminated one of our oil company employees. I believe she will take advantage of the COBRA premium reduction. However, I don't want our credit to be denied when we only report 12 employees on the 941. Is the premium reduction available for companies with less than 20 employees? TIA.

[Nashville]

You have three companies

You have been filing three 941s and actually have three different companies, related or otherwise.

Why would you think a threshhold would not apply to you because you do the work for companies in the aggregate?

The ownership group (or someone who advised them ) intentionally did not want a co-mingling of liability or other factors. Why now do they think they are entitled to a co-mingling for COBRA purposes??

[Ross]

Prior to 2007 we had an employee leasing company that took care of the payroll for the transportation and oil company. Back then we had over 100 employees, but sold several C stores and now only have 30 employees. I thought it might matter because we have one health insurance policy/plan for all 30 employees.