Employers who are paying COBRA premiums on behalf of Assistance Eligible Individuals who lost their health coverage due to an involuntary termination or a reduction of hours should use the updated Form 941 to claim credits to offset quarterly payroll taxes.
The COBRA assistance program was part of the American Rescue Plan Act (ARPA) passed on March 11. The $1.9 trillion package provides funding for a number of COVID-19 relief efforts, including the COBRA subsidy provision.
Form 941 is also used for employers who voluntarily elected to pay employees for emergency sick and family leave following the original December 2020 program expiration.
Employers eligible for the payroll credits should address lines 11d - 11f on Form 941.
For additional information, contact your Bukaty benefits consultant at 913.345.0440.