Why it’s important to terminate an employee on GoCo as soon as s/he is actually terminated (especially for Texas employers)

Posted 3 years ago by Jacque Middlebrooks

If you are a Texas employer, Texas Senate Bill 51 impacts how you terminate employees from your health and dental plans.

In a nutshell, you are required to provide coverage for the terminated employee until the end of the notification month. The notification month is the month that the insurance company finds out the employee has been terminated and it can be different from the month that the employee was actually terminated.

Here’s a little example of how this could play out in the real world. Let’s say Johnny, who was a full time employee enrolled in your health and dental plans, worked his last day at your company on November 25th. Things get hectic around the office and you don’t terminate him in GoCo until December 2nd. Because the communication of the termination happened in a new calendar month, you are now on the hook for providing coverage and paying premiums for Johnny through the month of December.

If your benefits are being managed on GoCo, all you have to do is make sure you terminate an employee on GoCo as soon as s/he is actually terminated. We’ll take care of the rest. But, keep in mind that if you enter an employee’s termination date on GoCo retroactively and it falls on the previous month, then our hands are tied and you’ll have to pay the full month of premiums!

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