Fewer people in HR does not mean less benefits work.
After a reduction in force, the benefits workload does not shrink with the headcount. It lands on a smaller team and runs on fixed dates. Here is what comes to HR, and where a broker takes it off the desk.
What lands on HR after a layoff.
Most of it has a deadline attached.
COBRA Notices
A layoff that ends coverage is generally a COBRA qualifying event for employers with 20 or more employees. The employer notifies the plan administrator within set deadlines, and the election notice follows (29 U.S.C. § 1161 et seq.).
WARN Act Notice
Larger employers may owe 60 days of written notice before a plant closing or mass layoff (29 U.S.C. § 2101 et seq.). Benefits questions belong in that conversation early.
Carrier Terminations
Carriers need accurate termination dates. Late reports can leave the employer paying premium for people who no longer work there.
ACA Counts
Layoffs change full-time headcount. That can affect large-employer status, affordability testing and 1095-C reporting (26 U.S.C. §§ 4980H, 6056).
Participation and Contributions
Carriers set their own participation and contribution requirements. A smaller group can fall short of them at renewal.
Unemployment and Severance
Severance terms can affect benefits continuation and unemployment claims. Your attorney sets the terms; we bring the benefits facts.
How we help.
A broker should take work off a smaller HR team, not add to it.
Notices and Dates
We help coordinate the notices and keep every date on one calendar.
Clean Data
We help get termination dates and eligibility records to carriers and payroll accurately.
Right-Sizing the Plan
We rerun the numbers on the smaller group, including participation, contributions and the renewal.
Fewer chances for error.
Fewer chances for error.
One Source
Notices, terminations and billing draw on the same records.
One Calendar
Dates are tracked with the rest of the account.
Your Counsel
Legal questions go to your attorney, and we bring the facts.
Questions Employers Ask About This
Does a layoff trigger COBRA?
A layoff that ends coverage is generally a qualifying event if the employer is subject to COBRA, which generally means 20 or more employees. Notice and election deadlines then apply.
How fast should we report terminations to the carrier?
Each carrier sets its own rules. Report terminations promptly, since late reports can leave you paying premium for people who have left.
Will a smaller group change our renewal?
It can. Carriers look at group size, participation and claims history, so raise the layoff before the renewal, not after.
Do you give legal advice?
No. Legal questions go to your attorney. We bring the benefits facts and the dates.
Related guides.
WARN Act: Plant Closings, Mass Layoffs and Employee Benefits
Notice rules and benefits.
Unemployment Insurance, Severance and Employee Benefits
What changes when coverage ends.
Benefits Implementation: Run It as a Project With Dates
Dates, owners and testing.
Is HR carrying more than it should?
Tell us what changed, and we will show you what to take off the desk.
Your renewal letter
Your census
Your current plan documents
Your renewal date
Rough answers are fine. We build the numbers from there.
Laws and rules referenced
COBRA: ERISA §§ 601-608, 29 U.S.C. §§ 1161-1168
WARN Act: 29 U.S.C. §§ 2101-2109
ACA employer shared responsibility: 26 U.S.C. § 4980H
ACA employer reporting: 26 U.S.C. § 6056
U.S. Department of Labor: COBRA — Continuation coverage overview.
U.S. Department of Labor: WARN Act — Advance notice of closings and layoffs.
An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.
Switch to CFH. Unhappy with your broker? Your employees won’t notice. You will. →
Cookies on This Site
We use cookies to keep the site working properly and to understand how it is used. You can decline anything that is not essential. See our Privacy Policy for the detail.
- Essential — needed for the site to load and for you to move around it. These cannot be switched off.
- Analytics — tell us which pages get read, so we know what is worth writing more of.
- Advertising — set by third parties such as ad and social platforms to measure and target campaigns.