IRS Releases Employer Guidance on COBRA Premium Assistance
The Internal Revenue Service has issued Notice 2021-31 providing guidance on how employers can calculate the credit they will receive for providing former employees with coverage under COBRA. A provision in the American Rescue Plan Act that SWACCA supported provides a 100% subsidy for premiums for health plans continued by people who have lost their jobs or had their hours reduced. This new IRS guidance explains how employers can get reimbursed for providing this COBRA subsidy that is only available from April 1st through September 30th. The notice explains the calculation of the credit, the eligibility of individuals, the premium assistance period, and other information that will be useful to employers and plan administrators seeking to understand this credit.
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