How Much Must an Employee Pay in Order to Continue

question 57

Multiple Choice

How much must an employee pay in order to continue health benefits under COBRA?

• A)All the premiums,plus up to a 2 percent administration fee.
• B)One half the policy premiums.
• C)Only whatever percentage of policy premiums the employee paid prior to leaving the job.
• D)All the policy premiums,plus up to a 5 percent administrative fee.
• E)Nothing because the employer must cover all premiums.

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Definitions:

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An accounting method of allocating the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up.

CCA Class

CCA Class refers to the Canadian Capital Cost Allowance system where assets are categorized for the purpose of depreciation calculation for tax purposes.

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