IRS finally announced how employers — those without a crystal ball — should complete Line 12b, related to the new COBRA subsidy payments, on the newly revised Form 941.
Although the form asks you to report the “Number of individuals provided COBRA premium assistance reported on line 12a,” the instructions don’t specify whether the number corresponds to:
- just the employees receiving the subsidy, or
- number of people covered under the policy (e.g., dependents, spouses).
IRS now says the number you enter on Line 12b should be “one” for each individual receiving a subsidy – regardless of the number of people benefiting from that policy. So, for example, if you have five employees receiving the credit in one quarter, enter “5” on the 941 – even if the number of people actually covered by the policy is 15 (i.e., 5 employees + 5 spouses + 5 dependents = 15).
The agency made the announcement during its weekly payroll partners conference call. You’ll see written confirmation within the new few weeks on the IRS Web site’s new COBRA page . You can bookmark the page and then go back to it when the confirmation is posted.
To download a copy of the new Form 941, go to www.irs.gov/pub/irs-pdf/f941.pdf.