can we keep terminated ee's on payroll for medical and other H&W bene's??

welcome

We're in MA and I've heard of this being done before but it sounds questionable. Can we keep a terminated employee on our payroll to pay severance and keep them on our medical and dental plans?? is this just a LOA?

ACU Frank

What do your plan eligibility guidelines say? Is there an hours worked requirement?

davids

We have essentially accomplished what you are trying to do by paying COBRA for the ex-employee. We couldn't keep them on the insurance plan if they were no longer an employee, but nothing prevented us from paying their COBRA payments for the agreed upon number of months.

sonny

I think David is on track as usual. . pay the severance lump sum and COBRA. We did this once but I didn't like it. . what is liability while still technically on your payroll? what if he gets injured etc. .

Cheryl S SPHR

I agree with everyone -- end the employment relationship cleanly. Anything extra you want to pay (premiums, etc.) is best given in a lump sum payout with the final payroll. There are too many issues that can be created by keeping folks on payroll who are not truly working.

welcome

thanks everyone!