COBRA — Payroll Definition

COBRA paystub meaning: Law allowing you to keep your employer health insurance for 18 months after leaving (at full cost).

Law allowing you to keep your employer health insurance for 18 months after leaving (at full cost).

COBRA (Consolidated Omnibus Budget Reconciliation Act) gives employees who lose their group health insurance the right to continue coverage for up to 18 months (36 months in some situations). The catch: you pay the FULL premium — your share PLUS your employer's share — plus a 2% administrative fee. This often makes COBRA very expensive ($600-$1,800/month). It's a bridge coverage option while transitioning between jobs.

Benefit and retirement entries can change taxable wages and take-home pay. Verify eligibility, contribution type, employer matching, annual limits, vesting, and tax treatment against the current plan and payroll records.

When this term appears on a statement, read its label, current amount, year-to-date amount, pay-period context, and any adjacent rate or hours together. Resolve a mismatch with the original issuer or the cited authority rather than changing a record to force a preferred result.