Leave COBRA Subsidy Compliance to Us
The American Rescue Plan Act, signed into law on March 11, 2021, brought critical relief to businesses and individuals – and major new compliance requirements for employers.
The most significant requirement is a 100% COBRA subsidy that employers are required to provide to certain employees who have experienced involuntary termination or a reduction in hours that disqualifies them from the employer’s health plan. The mandate includes strict compliance, documentation and notification requirements for every employer that is subject to COBRA.
Employers must pay the entire premiums for assistance eligible individuals (AEIs) who qualify for COBRA coverage between April 1, 2021 and September 30, 2021. A fully documented analysis and open enrollment program must be completed within 60 days to avoid risk sanctions and penalties.
Employers are eligible for tax credits to recover the premiums, but these credits are reduced by other employer tax credits, such as the employee retention credit and emergency paid leave credit, resulting in a complex process for employers to navigate on their own.
With HR departments stretched to their limits during the pandemic, leave this compliance burden to Grassi’s HR Consulting and Tax professionals. We can provide the strategic analysis and support you need to effectively comply with every deadline and secure the maximum tax benefit. Services include:
- Prepare analysis of current COBRA enrollment
- Confirm former employee eligibility for the past 18 months
- Distribute required AIE notifications throughout COBRA subsidy period
- Provide enrollment assistance to AEIs
- Compile full process documentation to protect your organization in the event of audit
- Project employer COBRA payments and impact on cash flow
- Calculate COBRA tax credits, including potential offset of other applicable tax credits
Call Grassi’s HR consultants today to discuss our solutions and customized options for your business.