Comments on: Obama stimulus package contains 6 big paperwork changes for you

By: Kerry Isberg

Kerry Isberg — Tue, 24 Nov 2009 20:56:57 +0000

John: The IRS has a lot of info posted on its Web site now about this topic. You can start here:

http://www.irs.gov/newsroom/article/0,,id=204505,00.html

Hope this helps.

Kerry

By: Judy

Judy — Tue, 24 Nov 2009 14:25:28 +0000

John:
I think you adjust your 941. Unless you have less that 20 employees, then the stimulus should be reflected on your bill.

By: John

John — Tue, 24 Nov 2009 00:16:56 +0000

Dear Kerry,
How do we make the payment of this 35% stimulus bill? Should the employee pay only 35% of the COBRA premium upfront or should the employer file for reimbursement later? Please explain how this plan is utilized. Any advice would be appreciated. Thanks John.

By: Feds issue followup on COBRA tax credits for employers | HRMorning.com | Your daily dose of HR

Fri, 27 Feb 2009 11:04:00 +0000

[...] “Obama stimulus package contains 6 big paperwork changes for you” [...]

By: Randi

Randi — Thu, 26 Feb 2009 18:54:57 +0000

If you don’t already pay someone to handle COBRA for you, this may be the time to look into it — I see this as something of an administrative nightmare. That said, let’s just hope all this helps the economy so that we still have jobs in 2010!

By: Michael

Michael — Thu, 26 Feb 2009 15:55:26 +0000

I am a partner in a small payroll service. We do not administer insurance benefits plans for our clients. The problem I see with this new COBRA rule is that it will require us collecting the COBRA offset figures from our clients each quarter. I suspect that getting such information in a timely and correct way will be difficult. The politicians say they are for small business, but these types of regulations are hardest for small business to deal with. We simply don’t have the manpower to comply with all the free labor government expects out of us. In the end I’m guessing that many businesses will fail to properly claim the credit on the 941 and will simply eat the cost.

By: Kerry Fitzgerald, Editor

Kerry Fitzgerald, Editor — Tue, 24 Feb 2009 18:52:36 +0000

Cheryl, The 35% refers to the amount a former employee must pay toward the COBRA continuation premium.

While someone can elect COBRA coverage for 18 months, under this law they’re only eligible for the subsidy for nine months.

Most policies charge a monthly premium – but even if someone chose to pay for 9 months of coverage (the length of the subsidy) up front, the cost of 35% of the premium would still be the same.

Hope this helps.
Kerry

By: Cheryl

Cheryl — Tue, 24 Feb 2009 13:31:39 +0000

35% of what? Is it 35% per month? Or is it 35% of the total amount for 18 months? Please advise

By: Sharon D

Sharon D — Tue, 24 Feb 2009 00:05:26 +0000

Diana Hunt,
Voluntary terms are exactly as you stated, 18 months at 102%.
Most companies have a waiting period before new employees are eligible for insurance that matches the probationary period so anyone who isn’t yet eligible for insurance isn’t eligible for COBRA either. If they are eligible for insurance they would also be eligible for the subsidy as long as their termination wasn’t voulntary or gross misconduct.
The eligibility period for COBRA is 18 months but the preliminary information I have on the subsidy is that it is only for 9 months.
Hope this helps.

By: Diana Hunt

Diana Hunt — Mon, 23 Feb 2009 21:50:40 +0000

Regarding COBRA coverage for the individual who voluntarily terminates, I assume in this case the
voluntarily terminated inidividual would have to pay full cobra premium + admin costs as it has been
in the past. I also assume that it would be available for the same time period – 18 months.
Can any one confirm?

Also, what about the person who leaves during probationary period – not really a lay off.
What would the rule be for this situation?

Thanks-