All full-time, part-time and other employees as defined by Section 401(c)(1) of the Internal Revenue Code are treated as employees for COBRA. If covered by the plan, agents and sub-contractors must also be counted. One must keep in mind that there must have been 20 or more employees on a "typical business day" during the past year. This has been interpreted to mean that the employer must have had 20 or more employees on at least 50 percent of working days during the past year.