The COBRA Subsidy is continually evolving. In a notice published March 31, 2009, the IRS addresses a number of significant issues resulting from the new COBRA Subsidy. Most important, the new notice clarifies the term “involuntary termination” and how the COBRA premium reduction is calculated. For example, when an employee accepts a severance package rather than face the prospect of an announced reduction in force or when an employee quits rather than accept a position with significantly reduced hours, the termination of employment will be considered “involuntary” for purposes of the COBRA subsidy. Click here to read the full notice: http://www.irs.gov/pub/irs-drop/n-09-27.pdf.
Are you a current Xenium client? Contact your HR Account Manager with any questions regarding the current COBRA regulations.
Not a Xenium client? Click here to purchase the Xenium COBRA Subsidy Survival Kitor contact Brandon Laws at Brandon.Laws@Xeniumhr.com or call (503) 612-2009 for more information. Our kit provides employers with an easy-to-understand explanation of the regulations and notification requirements under the new COBRA subsidy requirements.
