Employer alert: COBRA changes

By Curt Kipp,
Oregon Association of Nurseries
Daily Digger
The American Recovery and Reinvestment Act of 2009, otherwise known as the “stimulus package,” includes a 65 percent health insurance premium subsidy for eligible workers who use the COBRA program after being involuntarily terminated. This federally-paid benefit, which lasts for up to nine months, is intended to help former employees avert a major drain on their finances. That’s good news for them, but the law places a burden on employers, who must pay the benefit and then claim a credit against payroll taxes from the federal government. Employment law expert Jan Hirsch of Jordan Schrader Ramis P.C. shares all the particulars in a new BusinessAlert update, which you can read here. It outlines, in detail, the documentation employers must maintain and submit in order to receive credit for premiums paid.


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