{"id":1249,"date":"2009-07-06T22:20:37","date_gmt":"2009-07-07T02:20:37","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=1249"},"modified":"2009-07-06T22:20:37","modified_gmt":"2009-07-07T02:20:37","slug":"irs-provides-guidance-on-premiums-paid-from-an-hra","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2009\/07\/irs-provides-guidance-on-premiums-paid-from-an-hra\/","title":{"rendered":"IRS Provides Guidance on Premiums Paid from an HRA"},"content":{"rendered":"<p class=\"MsoNormal\" style=\"margin: 0in 0in 6pt; line-height: 14.25pt; text-align: left;\" align=\"left\"><span style=\"font-size: 10pt; color: black; font-family: &quot;Verdana&quot;,&quot;sans-serif&quot;; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman';\">The <a href=\"http:\/\/www.irs.gov\/\" target=\"_blank\"><span style=\"color: purple; mso-bidi-font-size: 12.0pt;\">Internal Revenue Service (IRS)<\/span><\/a> has released <a href=\"https:\/\/old.visionpayroll.com\/kb\/wp-content\/uploads\/2009\/04\/n-09-271.pdf\" target=\"_blank\"><span style=\"color: purple; mso-bidi-font-size: 12.0pt;\">Notice 2009-27, <\/span><\/a><\/span><em style=\"mso-bidi-font-style: normal;\"><span style=\"font-size: 10pt; color: black; font-family: &quot;Verdana&quot;,&quot;sans-serif&quot;; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman';\"><a href=\"https:\/\/old.visionpayroll.com\/kb\/wp-content\/uploads\/2009\/04\/n-09-271.pdf\" target=\"_blank\"><span style=\"color: purple;\">Premium assistance for COBRA benefits<\/span><\/a><\/span><\/em><span style=\"font-size: 10pt; color: black; font-family: &quot;Verdana&quot;,&quot;sans-serif&quot;; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman';\">. Pursuant to the American Recovery and Reinvestment Act of 2009 or ARRA, certain involuntarily terminated employees are eligible for employer-provided subsidies to help pay for their Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation coverage. Employers may then claim a payroll tax credit on their <a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/f941.pdf\" target=\"_blank\"><span style=\"color: purple; mso-bidi-font-size: 12.0pt;\">Form 941<\/span><\/a> to be reimbursed for the assistance provided.<\/span><span style=\"font-size: 12pt; color: black; font-family: &quot;Times New Roman&quot;,&quot;serif&quot;; mso-fareast-font-family: 'Times New Roman';\"><\/span><\/p>\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; line-height: 14.25pt; text-align: left;\" align=\"left\"><span style=\"font-size: 10pt; color: black; font-family: &quot;Verdana&quot;,&quot;sans-serif&quot;; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman';\">In recently issued guidance, the <a href=\"http:\/\/www.irs.gov\/\" target=\"_blank\"><span style=\"color: purple; mso-bidi-font-size: 12.0pt;\">IRS<\/span><\/a> clarified that when assistance eligible individuals (AEIs) pay their COBRA premiums on a pretax basis from a health reimbursement arrangement (HRA), the premiums are treated as paid by the employer, not the employee. Consequently, the AEIs are not considered to have paid their thirty-five percent share of the premium for purposes of calculating the allowable credit. Contact <a href=\"mailto:info@visionpayroll.com\" target=\"_blank\"><span style=\"color: purple; mso-bidi-font-size: 12.0pt;\">Vision Payroll<\/span><\/a> if you have any questions on the COBRA premium reduction credit.<\/span><span style=\"font-size: 12pt; color: black; font-family: &quot;Times New Roman&quot;,&quot;serif&quot;; mso-fareast-font-family: 'Times New Roman';\"><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Internal Revenue Service (IRS) has released Notice 2009-27, Premium assistance for COBRA benefits. Pursuant to the American Recovery and Reinvestment Act of 2009 or ARRA, certain involuntarily terminated employees are eligible for employer-provided subsidies to help pay for their Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation coverage. Employers may then claim a payroll tax [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[795,819,545,548,965,964,321,842],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/1249"}],"collection":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/comments?post=1249"}],"version-history":[{"count":3,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/1249\/revisions"}],"predecessor-version":[{"id":1252,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/1249\/revisions\/1252"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=1249"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=1249"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=1249"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}