- Health Care Reform on Hold
- IRS Clarifies How Employers May Claim Credit for for Their Share of ARRA COBRA Premiums Received in 2010 for Coverage in 2009
- Updated Model Notices for ARRA COBRA Premium Subsidy
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Health Care Reform on Hold
Republican Scott Brown's Senate victory in Massachusetts has left the still-in-progress final bill on health care reform one vote shy of being filibuster-proof, which has congressional Democrats reconsidering their strategy. Senate Majority Leader Harry Reid had indicated that they would not rush into anything and would wait for the new Senator to arrive before pursuing reform any further. However, House Speaker Nancy Pelosi has presented a package of changes to the Senate bill, telling Senate Democratic leaders that if they could use a controversial maneuver known as "reconciliation" (which would allow Democrats to pass the measure with only 51 votes) to approve the changes, that the House would then approve the Senate bill. This approach would draw strong opposition, though, from Republicans who are calling for a fresh approach to the bill. In his State of the Union speech, President Obama encouraged taking another look at the proposed plan "as temperatures cool." IRS Clarifies How Employers May Claim Credit for their Share of ARRA COBRA Premiums Received in 2010 for Coverage in 2009
In a reversal of position, the IRS recently stated in Q&A RD-6 that if an employer receives ARRA COBRA premiums in 2010 for retroactive coverage in 2009, the employer has to take credit for its share of the premium on the Form 941 for the quarter in which the premium was received or in a later quarter in 2010. Previously, the IRS had instructed employers to go back and amend the Form 941 for the 2009 quarter that corresponded with the COBRA coverage period. The IRS also clarified that if an employer reduces its payroll tax deposits based on receipt of an individual's 35% premium payment, the employer must claim the credit for its share of the related premium on Form 941 for the quarter during which its payroll tax deposits were reduced. Updated Model Notices for ARRA COBRA Premium SubsidyARRA, as amended by the Department of Defense Appropriation Act, 2010 (2010 DOD Act), mandates that plans notify certain current and former participants and beneficiaries about the premium reduction.
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