The IRS recently issued helpful guidance for employers abiding by the American Recovery and Reinvestment Act of 2009’s (the “Recovery Act”) attempts to aid employees who are involuntarily terminated. One provision of the Recovery Act provides that a 65% COBRA premium subsidy must be made available to such employees – i.e., once the employee has paid 35% of the premium, the group health plan must treat the employee as having paid the full premium required for COBRA continuation coverage.

 Payroll Tax Credit for Employers

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