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COBRA Premium Subsidy – Employers Must Take Action
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By Lorisa D. LaRocca, Esq.
On February 17, 2009, President Obama signed his economic stimulus plan, the American Recovery and Reinvestment Act of 2009 (the "Act"), into law. However, what you may not know is that the Act significantly modifies the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA") so as to provide a 65% government subsidy toward payment of COBRA premiums for certain employees, for up to nine months. Perhaps most importantly, the subsidy must be initially paid by employers who can then recoup these payments from the government as a credit against its federal payroll tax liabilities. In addition, employers are required to notify all affected individuals of their right to receive the subsidy, including all individuals involuntarily terminated from September 1, 2008 forward and in some cases, their dependents.
read more here.............
Print Story | Email Story
By Lorisa D. LaRocca, Esq.
On February 17, 2009, President Obama signed his economic stimulus plan, the American Recovery and Reinvestment Act of 2009 (the "Act"), into law. However, what you may not know is that the Act significantly modifies the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA") so as to provide a 65% government subsidy toward payment of COBRA premiums for certain employees, for up to nine months. Perhaps most importantly, the subsidy must be initially paid by employers who can then recoup these payments from the government as a credit against its federal payroll tax liabilities. In addition, employers are required to notify all affected individuals of their right to receive the subsidy, including all individuals involuntarily terminated from September 1, 2008 forward and in some cases, their dependents.
read more here.............
