Dear Clients,

 

I would like to take this opportunity to reach out and let you know we are continuing to work and implement changes associated with the recent legislation passed regarding the COBRA law.

 

What we are aware of to date is that employers will be eligible to receive credit against federal tax liability equal to the 65% that an employer will pay in COBRA premium.  The credit that the employer will be eligible for can be taken quarterly on their 941 or credited each week/month against the calculated federal tax liability due.  Our software company is currently in the process of making the changes needed to implement this.  We hope to have in place and release a detailed procedure for reporting this to us within the next few weeks.

 

I understand that there are lots of questions associated with this stimulus package.  Please be advised that we have continued to participate in weekly IRS conference calls in an effort to monitor the developments regarding all changes with the stimulus package.

 

Current information on the Stimulus Legislation is available at the following link:  http://www.irs.gov/newsroom/article/0,,id=204335,00.html?portlet=6 or you can simply scan thru question and answers to frequently asked questions by searching on the IRS website.

 

If you have any questions or concerns, please feel free to contact myself of your payroll processor.

 

Sincerely,
Heather Marckel
Director of Finance