The American Recovery and Reinvestment Act of 2009 (the Act) made changes to continuation health coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly known as COBRA. Employers are required to pay sixty-five percent of the premiums for certain eligible individuals, but may claim a credit on Form 941, Employer’s QUARTERLY Federal Tax Return, for these premiums.
If you need to claim a credit for COBRA premiums paid, contact Vision Payroll and we’ll update your payroll with the appropriate tax codes so that you will receive proper credit on your Form 941. If your credit exceeds your liability, no tax deposit will be due for that period and you may receive a refund when you file your Form 941.
Over the next several days, Vision Payroll will be posting additional articles on changes to payroll and HR by other sections of the Act. We’re also planning a seminar on implementing these changes, so contact Vision Payroll if you’d like to attend.