Cobra Control Services, LLC (“CCS”) is pleased to provide a new report for employers who use CCS for COBRA and continuation of coverage services. This new report provides information about continuants who elected to be treated as eligible for premium assistance under the American Rescue Plan Act (ARPA) and has data that will be helpful for your 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 your assistance-eligible individuals. You may wish to use the figures contained in this report on your 941 tax reporting to receive a credit for premiums paid for your continuant(s). Consult your tax advisor for information about taking a tax credit.
An email with instructions on how to access the report will be sent to administrators. Look out for the email for more information.
If you have questions about the new report, please contact CCS at 888.887.6187 or email service@cobracontrol.com.
