As part of The American Rescue Plan of 2021, 100% of COBRA insurance premiums are covered by the federal government for employees who lost their jobs due to the pandemic. This subsidy will be in the form of a payroll tax credit and will subsidize coverage between April 1 and September 30, 2021.
The IRS recently issued Notice 2021-31 to answer some common employer questions regarding the payroll tax credit.
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Bailey Cummins, PHR, is a member of the HRinDemand team, a human resources company in Reno, NV, offering expert guidance and easy-to-use tools to help small businesses with employment regulations, compliance, employee relations, and company growth.