AT A GLANCE
On July 26, 2021, the IRS released another round of guidance regarding the COBRA premium assistance provisions of the American Rescue Plan Act (ARPA). IRS Notice 2021-46 contains 11 new questions and answers about the COBRA subsidy.
Additional Q&As about the COBRA Subsidy
IRS Notice 2021-46 contains 11 additional questions and answers related the administration of the COBRA premium assistance provisions and tax credit. The guidance addresses numerous topics, including, the availability of the premium assistance to individuals eligible for an extension who had not elected it and whether premium assistance for vision or dental-only coverage ends due to eligibility for other health coverage that does not include vision or dental benefits.
Employers and plan administrators should review the guidance to determine if any action is needed.
Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.