The Internal Revenue Service
recently provided clarification for employers seeking credit
for COBRA subsidy premiums received in January 2010 for
December 2009 coverage. The guidance, which is addressed
in RD-6 of the COBRA Q&A section on the IRS
website, reveals that employers who receive subsidy
payments in January 2010 for December 2009 coverage must claim
the payroll tax credit on their 2010 Revised Form
941 (not the 2009 form).
Reminder Regarding
Employer Recovery of Subsidy Credit
Employers
subject to COBRA can recover subsidy payments made on behalf
of Assistance Eligible Individuals (AEIs) from the federal
government through a credit against their payroll tax
liability. In order to claim the payroll tax credit, the
employer must use the Revised Form 941 (see links
below). Employers must note, however, that the credit
cannot be claimed until the AEI’s reduced premium payment has
been received.
Helpful Links for
Employers
For easy access to important
documentation, please visit the following
links:
If you have any further
questions about claiming credit for the premium subsidy,
please contact our office at (919)
403-1986.
