COBRA Subsidy Extended Through May 31, 2010
May 2, 2010
by Richard L. Connors
Stinson Morrison Hecker LLP
Copyright © 2010
Congress in April extended the federal COBRA subsidy through May 31, 2010. As a result, workers who are involuntarily terminated from employment between September 1, 2008 and May 31, 2010 may be eligible for a 65% subsidy of their COBRA premiums for a period of up to 15 months. Employers must provide COBRA coverage to eligible individuals who pay 35% of the COBRA premium. Employers are reimbursed for the other 65% by claiming a credit for the subsidy on their payroll tax returns, and must maintain supporting documentation for the claimed credit
Richard L. Connors is an attorney with Stinson Morrison Hecker LLP, one of the country's largest law firms with more than 300 attorneys in more than 45-industry-focused areas. Mr. Connors represents management exclusively in employment and labor law.
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