google-site-verification: google5ae98130f18ad244.html

Wednesday, January 29, 2020
   
Text Size

Work Force Development

Feb. 8 - COBRA Eligibility Length Extended

Workers who lose their jobs during January and February may qualify for a 65-percent subsidy on their COBRA health insurance premiums, according to the Internal Revenue Service. Newly eligible individuals, along with those already receiving the subsidy, can now receive it for up to 15 months.

Created by the American Recovery and Reinvestment Act of 2009, the COBRA subsidy eligibility period was originally scheduled to expire at the end of 2009, and eligible individuals only qualified for the subsidy for nine months. But the Department of Defense Appropriations Act, 2010, enacted on Dec. 19, extended the eligibility period and the maximum duration of COBRA premium assistance.

As a result, workers who are involuntarily terminated from employment between Sept. 1, 2008, and Feb. 28, 2010, may be eligible for a 65-percent subsidy of their COBRA premiums for a period of up to 15 months. Involuntarily terminated employees who meet certain other requirements, and certain family members of those individuals, are referred to as "assistance-eligible individuals."

Larger employers must provide COBRA coverage to assistance-eligible individuals who pay 35 percent of the COBRA premium. Employers are reimbursed for the other 65 percent by claiming a credit for the subsidy on their payroll tax returns: Form 941, Employers QUARTERLY Federal Tax Return, Form 944, Employer's ANNUAL Federal Tax Return, or Form 943, Employer's Annual Federal Tax Return for Agricultural Employees. Employers must maintain supporting documentation for the claimed credit.  Smaller companies are not required to provide COBRA assistance.
Comment (0) Hits: 6437

Page 233 of 240

CLICK to SUBSCRIBE and Support Great Journalism!

Follow Us!

TwitterFacebook
MY ACCOUNT
CONTACT
SOCIAL
MORE
ADVERTISE
Coastal Empire News
Headquarters: 2222 Bull Street,Savannah, GA. 31401.
Tel: 912-220-2759 | Hours: 8:30 a.m. to 5:00 p.m.