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Cobra and the Stimulus Package
Benefits & Compensation
Cobra and the Stimulus Package
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
I know there are probably more questions than answers at this point - but I'll throw it out there anyway for discussion. Do we know how the employer will be reimbursed the 65% subsidy for Cobra? Will
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Forums » Topic Forums » Benefits & Compensation » Cobra and the Stimulus Package
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Cobra and the Stimulus Package
posted at 2/17/2009 4:11 AM EST
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Posts: 228
First: 11/1/2006 Last: 1/20/2010 |
I know there are probably more questions than answers at this point - but I'll throw it out there anyway for discussion. Do we know how the employer will be reimbursed the 65% subsidy for Cobra? Will the government be issuing updated Cobra enrollment forms? Does the subsidy also apply to dental coverage? I only have one former employee who will qualify. Should I be contacting her now or wait until further guidance comes from the feds? |
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Cobra and the Stimulus Package
posted at 2/17/2009 6:12 AM EST
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Posts: 79
First: 3/19/2008 Last: 10/15/2009 |
I read, but don't remember where, that the remibursement to the employer will come as a tax credit on the next month's payroll taxes. But don't quote me, I'm just putting what I recall out here. |
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Cobra and the Stimulus Package
posted at 2/17/2009 11:02 AM EST
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
Workforce has put out a few articles. One stated that the employer would lower their payroll taxes by the 65% amount the next time they wired money. Unfortunately right now our payroll/accounting system is not set up to do this easily....and it interacts with our payroll tax forms/liabilities.
Until the provider/IRS update the payroll tax forms, this is not going to be fun. My Controller and I talked today about just waiting to deduct until the IRS/payroll provider had updated their systems to handle this. The govt has now inter-mixed benefits further into payroll matters. We had 401k deductions and Section 125 deductions and now we will have COBRA deductions on the 941's. Should be interesting. |
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Cobra and the Stimulus Package
posted at 2/17/2009 11:14 AM EST
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Posts: 62
First: 9/13/2005 Last: 11/19/2010 |
Okay, if I'm reading this correctly, the Secretary of Labor has 30 days after enactment of the Act to issue model notices for the notification required for eligible individuals about the federal subsidy and "shall" provide outreach consisting of public education and enrollment assistance targeting employers. This information "shall" be made available on the DOL website. Employers have 60 days after enactment of the Act to issue the required notification to eligible individuals. |
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Cobra and the Stimulus Package
posted at 2/18/2009 6:02 AM EST
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
But one thing I read today by Workforce is that subsidies will be available starting March 1st. That won't happen and overpayments will happen. I haven't heard directly about when we have to have tracked those termed participants down by but once we do, they have the 60 day window to opt in.
Workforce has done an AWESOME job keeping up with this legislation and posting articles on it's home page. Kudos to them! |
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Cobra and the Stimulus Package
posted at 2/18/2009 9:19 AM EST
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Posts: 51
First: 3/30/2005 Last: 5/27/2010 |
another excellent source of legal info:
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Forums » Topic Forums » Benefits & Compensation » Cobra and the Stimulus Package
