IRS Releases Information to Help Employers Claim COBRA Medical Coverage Credit on Payroll Tax Form
The following information can be found at the IRS web site: http://www.irs.gov/newsroom/
IRS Form 941 and 941 instructions can be found on Discovery's web site under COBRA Printable Forms.
COBRA: Answers for Employers
Under the American Recovery and Reinvestment Act of 2009, certain individuals who are eligible for COBRA continuation health coverage, or similar coverage under State law, may receive a subsidy for 65 percent of the premium. These individuals are required to pay only 35 percent of the premium. The employer may recover the subsidy provided to assistance-eligible individuals by taking the subsidy amount as a credit on its quarterly employment tax return. 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.
February 26, 2009 · Categories: COBRA · Read article »
ARRA Amends Code Section 132 - Temporary Increase in Transit Monthly Maximum
Effective March 1, 2009, The American Recovery and Reinvestment Act of 2009 (ARRA) amends Code Section 132(f)(2) to provide that the monthly statutory limit for qualified mass transit and van pooling benefits (combined) is raised from $120 to $230 per month, which is the monthly statutory limit for qualified parking expenses.
ARRA contains a sunset provision so that the increase in the monthly limit will expire on December 31, 2010 unless it is extended in future legislation.
February 25, 2009 · Categories: Transportation · Read article »
ARRA - COBRA Subsidy Program Update
Visit Discovery Benefits' COBRA Printable Form section for PDF versions of Frequently Asked Questions (FAQs) for both employers and qualified beneficiaries. The FAQs will be updated as additional guidance is received.
Also added to our web site are the revised 941 forms and instructions released by the IRS yesterday.
February 24, 2009 · Categories: COBRA · Read article »
Senate Approves $787 Billion Economic Stimulus Package - COBRA Provisions Included
The Senate approved the $787 billion economic stimulus package Friday. President Obama is expected to sign the stimulus bill into law Tuesday, February 17. Discovery Benefits is tracking the bill very closely and will be communicating with its clients the details of the COBRA provisions and the next steps to take once the final bill is signed.
February 14, 2009 · Categories: COBRA · Read article »
Economic Stimulus Bill Update - COBRA
Yesterday, the stimulus package made it through the Conference Committee and now heads back to the House and Senate for a final vote.
The legislation prepared by Congressional staff indicates that the agreement calls for the following with respect to COBRA:
February 12, 2009 · Categories: COBRA · Read article »
Senate Passes Economic Stimulus Package - COBRA Subsidy Included
The Senate has just voted to approve the Senate's version of the economic stimulus package. The next step is a House-Senate conference committee, which will seek to reconcile the differences in the two bills, including the differences with respect to the COBRA changes.
February 10, 2009 · Categories: COBRA · Read article »
Senate Version of the Stimulus Bill Changes COBRA Subsidy
The Senate COBRA premium subsidy provisions, agreed to over the weekend by a bipartisan panel of Senate negotiators, were changed from the provisions approved earlier by the Senate Finance Committee.
February 10, 2009 · Categories: COBRA · Read article »
Summary - COBRA Legislative Changes Included in House and Senate Economic Stimulus Legislation
The following is a short synopsis of the changes to COBRA legislation currently included in the different versions of the House and Senate economic stimulus legislation.
February 6, 2009 · Categories: COBRA · Read article »
Senate Version of Stimulus Bill Temporarily Increases Transit Benefit
The Senate version of the Stimulus Bill included a provision that would temporarily increase the amount excludable each month under Code Section 132 for transit benefits from $120 to $230--- the same as parking.
February 3, 2009 · Categories: Transportation · Read article »