Continued from Hot News

COBRA Notices for Extended Benefits (cont)

Financial:

Employers must continue to pay 65% of COBRA Premiums for a maximum of 15 months. The employer may later take a credit against its payroll taxes.

Administrative:

Current procedures for administering the COBRA Subsidy provisions must be quickly modified to reflect the new rules. Employers must provide an opportunity for certain individuals to re-enroll in COBRA as well as accept late payments from individuals that are newly eligible for the extended subsidy rights. Employers must also comply with the new notice requirements.

In response to the burden placed on employers, HNI’s Compliance Attorney will host a Legislative Developments 2009 Webinar on January 7th, 2010 to help you learn how your compliance obligations have changed. Please contact Terry Darga at tdarga@hni.com to register for the webinar.