Miller & Chevalier COBRA Teleconference

02.23.09Miller & Chevalier held an invitation-only teleconference on the COBRA subsidy that was included in the American Recovery and Reinvestment Bill of 2009 that President Obama signed today. Employers are required to subsidize 65% of the COBRA premium for up to nine months for employees who were involuntarily terminated from employment between September 1, 2008 and December 31, 2009. The employer can immediately be reimbursed by withholding the payment as a credit against payroll taxes. The legislation has a March 1 effective date, is full of traps for the unwary, and because of the payroll tax implications, compliance cannot simply be outsourced to a COBRA administrator. Since the legislation was introduced, we have worked closely with Congress and the Department of Treasury on the issues and open questions associated with the subsidy. To learn more, see Miller & Chevalier's February 13 Employee Benefits Alert.
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