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IRS Issues Comprehensive Guidance Regarding ARPA COBRA Subsidy | Bond Schoeneck & King PLLC

[author: Lawrence Finnell]
On May 18, 2021, the Internal Revenue Service (IRS) issued Notice 2021-31 (Notice) which provides additional guidance and clarifications concerning the new COBRA premium assistance (“premium assistance” or “subsidies”) provisions enacted under the American Rescue Plan Act of 2021 (ARPA). As previously reported, under ARPA, employers are required to provide temporary 100% COBRA premium subsidies for certain eligible individuals who elect continuation coverage that is effective during the period of April 1 through September 30, 2021 (for all of the period, or any part of it). Employers will receive a tax credit in the amount of the subsidies provided.
The Notice follows a question and answer format addressing specific issues regarding the implementation of the ARPA COBRA subsidies. Below are some of the highlights from the Notice.

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