IRS Provides Further Clarity to Employers on Stimulus Tax Credits | Fisher Phillips jdsupra.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from jdsupra.com Daily Mail and Mail on Sunday newspapers.
[author: Lawrence Finnell]
On May 18, 2021, the Internal Revenue Service (IRS) issued Notice 2021-31 (Notice) which provides additional guidance and clarifications concerning the new COBRA premium assistance (“premium assistance” or “subsidies”) provisions enacted under the American Rescue Plan Act of 2021 (ARPA). As previously reported, under ARPA, employers are required to provide temporary 100% COBRA premium subsidies for certain eligible individuals who elect continuation coverage that is effective during the period of April 1 through September 30, 2021 (for all of the period, or any part of it). Employers will receive a tax credit in the amount of the subsidies provided.
The Notice follows a question and answer format addressing specific issues regarding the implementation of the ARPA COBRA subsidies. Below are some of the highlights from the Notice.
Our Employee Benefits & Executive Compensation Group summarizes the IRS’s 86 Q&As about the COBRA premium assistance subsidy and offers takeaways employers can use to guide their path.
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The American Rescue Plan of 2021 (ARPA), which was recently
signed into law by President Biden, contains several provisions
designed to assist employers and employees in the wake of the
COVID-19 pandemic. Among other things, Section 9501 of ARPA
establishes a 100% premium subsidy under the Consolidated Omnibus
Budget Reconciliation Act (COBRA), as well as additional COBRA
enrollment rights for certain employees.
In general, COBRA requires all group health plans sponsored by
private employers to offer temporary continuation of coverage to
employees and their families when such coverage would otherwise be
The American Rescue Plan Act Of 2021 COBRA Premium Subsidy - Food, Drugs, Healthcare, Life Sciences mondaq.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from mondaq.com Daily Mail and Mail on Sunday newspapers.