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Old 01-11-2010, 05:44 PM
 
6 posts, read 48,257 times
Reputation: 13
Default Subsidized COBRA continues after quitting new job

Thank you very much Diorgirl, for your detailed answer.
I thought subsidized COBRA is directly linked to me being unemployed. Don't I lose my status of being unemployed, after working for a day?
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Old 01-11-2010, 06:03 PM
 
6 posts, read 48,257 times
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Quote:
Originally Posted by stevemorse View Post
wait a minute you have to be real careful here! there are two ways to go about it. First off you quit so dont admit this or your out of luck. You can either claim it like you worked temporary when you get your paycheck. When you call in they asked you if you worked, claim the hours and they will deduct that from the amount. The other thing is to get the company to either not pay you at all if it is going to challenge the UE. I had the same situation happen , I claimed it was a temp job for one day on UE. But you need to be careful, you did not quit!!! So if they look hard you might *********rself. Be careful, call like you would regularly call in claim when you get check hours but if asked it was a temp job.
Steve,
It was a relief to know that you were in my situation and how you handled it. I was going to naively walk into the UI office and tell the whole truth.
The company is certain that they have to pay me.

My questions now are :
Do I have a choice of not submitting W4? They know my SSN, but I never submitted the W4. I don't mind if UI doesn't pay for that week.
If I report it as temp, won't they verify it? I have to report their address and phone number, don't I?

I know you will have the right answer. I appreciate your help.
Thanks a bunch
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Old 01-11-2010, 06:07 PM
 
Location: New Jersey
3,814 posts, read 7,830,097 times
Reputation: 910
Quote:
Originally Posted by rollersun View Post
Thank you very much Diorgirl, for your detailed answer.
I thought subsidized COBRA is directly linked to me being unemployed. Don't I lose my status of being unemployed, after working for a day?
You lose COBRA if you are eligible for coverage under another plan. If you get a new employer -- but that employer has a waiting or probationary period before you can qualify for its plan -- you can continue COBRA until you are eligible for the new employer's plan or until you exhaust the 18-month term of COBRA (whichever comes first).

The premium subsidy is based on: (1) qualifying for COBRA, and (2) earning less than the maximum income allowed under the terms of the subsidy.

According to the U.S. Department of Labor:
If an individual's modified adjusted gross income for the tax year in which the [COBRA] premium assistance is received exceeds $145,000 (or $290,000 for joint filers), then the amount of the premium reduction during the tax year must be repaid.

For taxpayers with adjusted gross income between $125,000 and $145,000 (or $250,000 and $290,000 for joint filers), the amount of the [COBRA] premium reduction that must be repaid is reduced proportionately.
http://www.dol.gov/ebsa/newsroom/fscobrapremiumreduction.html (broken link)
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Old 01-11-2010, 06:16 PM
 
6 posts, read 48,257 times
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Quote:
Originally Posted by diorgirl View Post
dick1973 is right -- the new employer is obligated to pay you for the time you "worked". Since these were hours you put in after you were hired, it doesn't matter what they had you doing during those hours.

You do have to report it to UI, because your former employer has to report you to federal and state tax agencies as a new hire -- however brief your tenure. Eventually that job will be attached to your record and resurface when UI does a search of your former employers in the future. Then they can nail you for not reporting it when you certified your unemployment as usual every two weeks.

The question UI will consider is not how much you earned -- but rather the fact that you quit (i.e., you refused work that was available to you). The determinaton whether to allow you to continue UI will really be up to the UI rep who reviews your case.

To lose COBRA, you have to have been eligible for insurance offered by another employer. I suspect that your new employer had a waiting period for enrollment in their medical plan -- so you didn't pre-enroll, with coverage effective on your first day of work, right?

If you did enroll in the new employer's coverage, you can't have dual coverage -- the new employer's and COBRA at the same time. Normally, your COBRA would end in that case. But since you probably didn't have sufficient time to make a premium payment on the new coverage, technically it never went into effect. So your COBRA coverage would remain intact.
Doesn't it take a while before they get the employment show up in the report?
If I report it as a temp job (like steve says), will they know this detail from that report?
I agree, I quit; but honestly I made a bold attempt to get back to work and it didn't work out. How do I tell UI not to penalize me for trying?
The distance to the place of work was about 35 miles, but the commute took about an hour. The hours would have conflicted with my kid's school hours, even after their after care hours. I would have left home at 7:30 and come home by 7:30. I was expected to carry their laptop and work on weekends and nights as well.
My skills were a stretch.
Pay was less than my last job.

Honestly I would have continued for less pay, but other two points are the main reason. But will this truth not disqualify my UI? What points will make a strong case?
Thanks for your insight.
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Old 01-11-2010, 06:22 PM
 
6 posts, read 48,257 times
Reputation: 13
Quote:
Originally Posted by Opyelie View Post
What did you tell the employer? That might have a bearing on it. Was this a "test/probation" period to see if they liked you and you liked them?

If UE doesn't allow you to refuse a job interview I doubt they'd look kindly on refusing an actual job, much less quitting once you had it after one day
That's the irony, isn't it. I could have sat lazily without trying and continued to get welfare. But I risk getting penalized for trying and failing. Honestly I am not in favor of being on the receiving end unnecessarily.
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Old 01-11-2010, 06:25 PM
 
1,828 posts, read 2,828,870 times
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I really dont think UI cares about the circumstances. I think the only thing that they would care about is that you quit. Definitely a scary deal if they were to disqualify you for that.
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Old 01-11-2010, 06:34 PM
 
6 posts, read 48,257 times
Reputation: 13
Quote:
Originally Posted by diorgirl View Post
You lose COBRA if you are eligible for coverage under another plan. If you get a new employer -- but that employer has a waiting or probationary period before you can qualify for its plan -- you can continue COBRA until you are eligible for the new employer's plan or until you exhaust the 18-month term of COBRA (whichever comes first).

The premium subsidy is based on: (1) qualifying for COBRA, and (2) earning less than the maximum income allowed under the terms of the subsidy.

According to the U.S. Department of Labor:
If an individual's modified adjusted gross income for the tax year in which the [COBRA] premium assistance is received exceeds $145,000 (or $290,000 for joint filers), then the amount of the premium reduction during the tax year must be repaid.

For taxpayers with adjusted gross income between $125,000 and $145,000 (or $250,000 and $290,000 for joint filers), the amount of the [COBRA] premium reduction that must be repaid is reduced proportionately.
Fact Sheet: COBRA Premium Reduction (http://www.dol.gov/ebsa/newsroom/fscobrapremiumreduction.html - broken link)
Appreciate your prompt response.
Atleast my COBRA is safe. Currently I am making COBRA payments to my past employer's administrator. If my UI case gets attached to the new employer (that i quit), will my COBRA be still administered by the past employer. Obviosly I am not clear of the relationship between my UI file and COBRA.
If I get disqualified by UI, will I end up paying full COBRA payment? Will I lose the subsidy?
Thanks
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Old 01-11-2010, 06:39 PM
 
Location: Spokane via Sydney,Australia
6,608 posts, read 6,629,489 times
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Quote:
Originally Posted by rollersun View Post
That's the irony, isn't it. I could have sat lazily without trying and continued to get welfare. But I risk getting penalized for trying and failing. Honestly I am not in favor of being on the receiving end unnecessarily.

Unfortunately that seems to be the case with a lot of the rules governing UI especially during these hard times of relying on federal extensions to survive. It is only too easy to do what may seem to be "the right thing" and yet wind up being penalised for effort.
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Old 01-11-2010, 06:39 PM
 
Location: New Jersey
3,814 posts, read 7,830,097 times
Reputation: 910
Quote:
Originally Posted by rollersun View Post
Doesn't it take a while before they get the employment show up in the report?
If I report it as a temp job (like steve says), will they know this detail from that report?
I agree, I quit; but honestly I made a bold attempt to get back to work and it didn't work out. How do I tell UI not to penalize me for trying?
The distance to the place of work was about 35 miles, but the commute took about an hour. The hours would have conflicted with my kid's school hours, even after their after care hours. I would have left home at 7:30 and come home by 7:30. I was expected to carry their laptop and work on weekends and nights as well.
My skills were a stretch.
Pay was less than my last job.


Honestly I would have continued for less pay, but other two points are the main reason. But will this truth not disqualify my UI? What points will make a strong case?
Thanks for your insight.
UI will say that you were aware of all of these factors before you took the job. You were not on the job long enough for your personal situation to change or for the terms of the job to have changed from those you accepted.

If you explain the situation to your local UI office honestly, perhaps they will allow you to continue benefits. It will be up to UI to make a determination; no one can tell you exactly what they will decide in your case.

On the other hand, if you misrepresent your situation in communications with UI and continue to collect benefits -- whenever the misrepresentation is discovered, you can be disqualified from future benefits and you can be expected to repay any benefits you collected since that one day of employment.

Those are the rules for everybody. And everybody has a different level of tolerance for risk taking. Some people are comfortable "rolling the dice" and taking the chance that they will not be discovered; others are not. How you proceed is up to you.
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Old 01-11-2010, 06:46 PM
 
Location: Westchester County, NY
144 posts, read 301,180 times
Reputation: 193
Quote:
Originally Posted by rollersun View Post
Doesn't it take a while before they get the employment show up in the report?
If I report it as a temp job (like steve says), will they know this detail from that report?
I agree, I quit; but honestly I made a bold attempt to get back to work and it didn't work out. How do I tell UI not to penalize me for trying?
The distance to the place of work was about 35 miles, but the commute took about an hour. The hours would have conflicted with my kid's school hours, even after their after care hours. I would have left home at 7:30 and come home by 7:30. I was expected to carry their laptop and work on weekends and nights as well.
My skills were a stretch.
Pay was less than my last job.

Honestly I would have continued for less pay, but other two points are the main reason. But will this truth not disqualify my UI? What points will make a strong case?
Thanks for your insight.
I don't know what the NJ unemployment law is but in NY you must be willing to commute up to 1 hour by private transportation and up to 1 1/2 hours by public transportation for a job. Before you say anything about distance, check ut the law in your state (I think I read you were in NJ).
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