Vision Payroll

March 12, 2010

Question of the Week: What Do We Need to Provide Vision Payroll to Get the COBRA Subsidy Credit?

This week’s question comes from James, a company controller. We have employees who are eligible for the COBRA subsidy credit. We receive a credit on Form 941 for the subsidy we provide employees. What do we need to provide Vision Payroll to get the COBRA subsidy credit? Answer: The COBRA subsidy credit has been extended to include employees terminated through March 31, 2010. The credit is generally 65% of the total premium, but Notice 2009-27 provided further details on the calculation of the premium reduction. Simply provide Vision Payroll the amount of the employer subsidy eligible for the credit and Vision Payroll will reduce the federal tax deposit due on Form 941.

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