The American Recovery and Reinvestment Act of 2009 carries a lot of changes for employers, not the least are changes to COBRA coverage. Under the new law, eligible employees who were enrolled in their employers' health plans when they lost their jobs will be able to receive COBRA coverage, but are required to pay only 35 percent of the premium. Employers can redeem the remaining 65 percent in the form of a tax credit on their quarterly payroll tax return.
From the IRS Web site:
"The employer may provide the subsidy — and take the credit on its employment tax return — only after it has received the 35 percent premium payment from the individual."
Recommended For You
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
