BAS’ Cobra Control Services, LLC ("CCS") is pleased to provide a new report with information about continuants who elected to be treated as eligible for premium assistance under the American Rescue Plan Act (ARPA). This new report provides data that may be helpful for an organization to use when claiming a tax credit for providing subsidized health coverage.
The American Rescue Plan Act provides a 100% COBRA premium subsidy for certain individuals entitled to federal COBRA or state mini-COBRA due to reduction of hours or involuntary termination of employment. Employers who provide "free" coverage to assistance-eligible individuals under federal COBRA may claim a tax credit for providing that coverage. Employers who provide "free" coverage to assistance-eligible individuals under state mini-COBRA do not take the tax credit (the insurance company is eligible for the credit).
The new report provides the cost of coverage as reported to CCS for an employer’s assistance-eligible individuals. The numbers contained in this report are intended to help with Form 941 tax reporting for employers to receive a credit for premiums paid for continuant(s). Consult your tax advisor for information about taking a tax credit.
An employer that has uses CCS for COBRA administration and has assistance-eligible individuals may obtain a copy of subsidy report by following these steps:
Important items to note:
If you have questions about the new report, please contact CCS at 888.887.6187 or email service@CobraControl.com.