If I decide to become an independent contractor (1099) can I keep the COBRA provided by my previous employer?
If I decide to go on W2, can I opt to stick with the COBRA from my previous employer ? (The potential new employer has a group health insurance plan but I'd have to pay 100% of the premium)
2007-02-11 11:40:55 · 2 answers · asked by Pearl J 2 in Business & Finance ➔ Insurance
Either situation wil allow you to elect COBRA from the former employer. Under COBRA you are paying 102% of the premium for the insurance, your former employer pays nothing.
If you pay for health insurance as an independent contractor you can deduct 100% of the premium on the front of your 1040. If you are an employee your employer should have a 125 plan in place that would allow you to pay the premium with before tax dollars which is the same as deducting 100% as a self-employed individual.
I would opt for the W-2 and the 100% paid under a 125 plan of a new employer.
2007-02-11 23:07:35 · answer #1 · answered by waggy_33 6 · 2⤊ 0⤋
As an independent contractor you are able to continue your health insurance from your former employer under the COBRA law. The same would apply if you were hired by another company and they didn't offer benefits to you, you'd still be able to continue your benefits under your former employer.
2007-02-11 21:45:08 · answer #2 · answered by HR Girl 2 · 1⤊ 0⤋