Alert to Employers: Changes in COBRA Requirements

Courtesy of NAW:

Late last week, the U.S. Department of Labor (DoL) released four model notices employers need to inform former employees of the availability of a premium subsidy for COBRA health continuation coverage. The premium subsidy for certain former employees was enacted as part of the Stimulus Bill signed into law by the President on February 17, 2009. Each of the model notices is tailored to a specific set of circumstances.

To access DoL’s press release on this topic, go to:
www.dol.gov/opa/media/press/ebsa/EBSA20090292.htm

To access the model notices, go to the Employee Benefit Security Administration’s (EBSA) dedicated web page:
www.dol.gov/cobra

Under the “For Employers” heading, click on the “COBRA ARRA Model Notices” link.
Please note the availability of additional helpful information on this page as well.

Additionally, the Internal Revenue Service (IRS) has produced some guidance to employers on how to manage the subsidy offsets on their quarterly tax forms. For IRS’ Q’s and A’s on the preparation of the form, go to
www.irs.gov/newsroom/article/0,,id=205373,00.html

To access the Employer’s Quarterly Federal Tax Return, go to:
www.irs.gov/pub/irs-pdf/f941.pdf

To access Quarterly Form instructions, go to:
www.irs.gov/pub/irs-pdf/i941.pdf