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IRS Q&A on COBRA Subsidy

The IRS has posted on its website 14 new Q&As to help employers claim the payroll tax credit for COBRA premium assistance payments made pursuant to the American Recovery and Reinvestment Act of 2009 (ARRA). The employer may recover the subsidy provided to assistance-eligible individuals (AEIs) by taking the subsidy amount as a credit on its quarterly employment tax return. The employer may provide the subsidy and take the credit on its employment tax return only after it has received the 35 percent premium payment from the individual. The IRS web site address for this information is: www.irs.gov/newsroom/article/0,,id=204708,00.html


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