--- title: COBRA Basics for Staffing Firms description: A plan is generally exempt when the employer normally had fewer than 20 employees. --- [Skip to content](https://help.backofficenow.com/cobra#main-content) English Show submenu for translations [More support](https://help.backofficenow.com/kb-tickets/new?hsLang=en) [Partner portal](https://tickets.backofficenow.com/tickets-view?hsLang=en) [![Boss Primary Logo w-o Descriptor\_Gray on White](https://help.backofficenow.com/hs-fs/hubfs/Logos%20and%20Branding%20guide/Logos/Logos%20without%20descriptors/Primary%20Logos%20without%20descriptors/Boss%20Primary%20Logo%20w-o%20Descriptor_Gray%20on%20White.png?width=350&height=172&name=Boss%20Primary%20Logo%20w-o%20Descriptor_Gray%20on%20White.png)](https://www.backofficenow.com) Open main navigation Close main navigation - English Show submenu for translations - [More support](https://help.backofficenow.com/kb-tickets/new) - [Partner portal](https://tickets.backofficenow.com/tickets-view) - BOSS Home BOSS Home Hello! How can we help you today? - There are no suggestions because the search field is empty. 1. [BOSS knowledge base](https://help.backofficenow.com/?hsLang=en) 2. [Compliance](https://help.backofficenow.com/compliance?hsLang=en) 3. [Federal and General](https://help.backofficenow.com/compliance?hsLang=en#federal-and-general) # COBRA Basics for Staffing Firms ## A plan is generally exempt when the employer normally had fewer than 20 employees. ## The rule IRS final regulations on continuation coverage say a group health plan (other than a multiemployer plan) is a small-employer plan, and not subject to those COBRA rules, if the employer normally employed fewer than 20 employees during the preceding calendar year. The employer includes controlled-group members. The regulations say an employer normally employed fewer than 20 if it had fewer than 20 employees on at least 50 percent of its typical business days. ## What employers must do Count the controlled group, not only the staffing entity that issued the paycheck. If the group is at or above 20, the continuation rules can apply when a qualifying event happens. This review did not confirm the length of continuation coverage or the premium percentage from the pages opened. ## Effective dates The small-employer test described above is the rule in the IRS final regulations. No January 1, 2027 change to the 20-employee test was on those pages. ## What this means for BOSS partners and associates BOSS is often the employer of record for the associate. Wage, break, leave, posting, and tax rules usually follow the state where the associate works. Tell BOSS that state before the assignment starts. Associates should record every hour worked on the timesheet. Do not promise a pay practice, a leave bank, or a posting the statute does not require. Questions? Contact BOSS Support at support@backofficenow.com. ## Sources - [IRS continuation-coverage regulations](https://www.irs.gov/pub/irs-regs/td8812.pdf) This article is general information, not legal advice. 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