A centerpiece of the recently enacted economic stimulus law — the American Recovery and Reinvestment Act of 2009 (ARRA) — is a nine-month, 65% COBRA subsidy for employees who are involuntarily terminated between September 1, 2008, and December 31, 2009, and who are otherwise eligible to elect COBRA coverage. The federal government, however, isn't directly picking up 65% of employees' COBRA tabs. Instead, COBRA-payable entities must first pay that 65% and then offset that amount against their payroll tax deposits or take a credit on their quarterly payroll tax returns. These provisions raise many timely compliance issues for employers. In a recent AHI web conference, attorney John Barlament, of Michael Best & Friedrich LLP, got to the heart of these matters.
Health flexible spending accounts that are part of cafeteria plans and church plans aren't covered under ARRA. But almost all other group ...(register to read more)