IRS gives an update for COBRA under the American Rescue Plan Act of 2021

by | May 24, 2021

The IRS released a notice providing guidance for employers, plan administrators and health insurers regarding the new tax breaks available under the American Rescue Plan Act of 2021 for the continuation of health coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).

Under the American Rescue Plan Act of 2021, there’s a temporary 100% reduction in the premium that individuals have to pay when they elect COBRA continuation health coverage plans after a reduction of hours or involuntary termination of employment. The new law provides a corresponding tax credit for the employers and insurers that maintain group health plans. The premium reduction and the tax credit are also available to continuation coverages for similar events related to State laws, often referred to as “mini-COBRA.”

The notice provides key information on calculating the credit, eligibility of individuals, and the assistance period as well as other details about the credit that is available. For more information, please read Notice 2021-31 or reach out to us to further assistance.

Questions or Want to Talk?

Call us directly at 972.221.2500 (Flower Mound) or 940.591.9300 (Denton),
or complete the form below and we’ll contact you to discuss your specific situation.

Bakes Takes Volume 1, Issue 9

Dec 3, 2024

This month’s Bake’s Takes explores the science of persuasion, the art of selfless networking, and the journey to relishing networking. Learn how to use principles of persuasion, build an effective network, and find a higher purpose in your networking endeavors. This curated list of reads presents an invaluable opportunity for leaders aiming to refine their strategic approach and drive impactful results.

Bakes Takes Volume 1, Issue 8

Nov 5, 2024

This month’s Bake’s Takes presents three powerful reads that discuss overcoming anxiety in high achievers, traits of effective teams, and reasons why leadership teams fail. It provides actionable advice on how to avoid mental traps, foster healthy collaboration, and elevate mediocre teams to high performing ones. Dive in to gain a fresh perspective on leadership challenges and strategies.

Attestation Services: An Introductory Guide

Nov 4, 2024

In today’s business world, trust and transparency are non-negotiable. Discover how attestation services can enhance your company’s credibility by providing independent verification of your financial information. Read our essential guide to learn how these services can drive business success and foster stakeholder confidence.

What do You Want… Really?

Oct 22, 2024

How you plan for retirement today can significantly affect your future. This article explores the implications of current decisions on future outcomes, and how the KHA team can help align your actions with your aspirations. Let’s start shaping your future today.

Will your Business Last Beyond You?

Oct 8, 2024

Ensuring business longevity involves intentional succession planning. Explore how KHA’s Dynamic Business Advisory program helps you identify strategic gaps and build a lasting legacy. Are you ready to think generationally?

Bake’s Takes Volume 1, Issue 7

Oct 1, 2024

Dive into the world of strategic consulting with Jonny Baker’s “Bake’s Takes”, featuring a careful selection of insightful reads from the fields of team dynamics, conflict resolution, and decision-making. This edition explores the true meaning of teamwork, the importance of healthy conflict in management, and introduces the innovative “RAPID” decision-making method. A rich resource for leaders seeking to create vision, alignment, and execution.

Are you a CEO or a Firefighter?

Sep 24, 2024

Are you a business owner stuck in the firefighting mode, rushing from one crisis to another? Discover how KHA Strategic Consultants can help you transition from a reactive approach to proactive strategic planning.

Can You Attract Top Talent?

Sep 10, 2024

In the battle for top talent, 75% of companies struggle to fill positions, giving the onus to firms to differentiate themselves. This article outlines four key attributes successful firms possess.

Bakes Takes Volume 1, Issue 6

Sep 3, 2024

Explore the top three reads recommended by KHA Consulting’s Jonny Baker in this month’s Bake’s Takes. From understanding how new CEOs establish trust, to leveraging your strengths for greater impact, and spotting talent in the modern era, these articles offer essential insights for today’s leaders. Don’t miss out on these refreshing perspectives designed to push your thinking and enhance your leadership effectiveness.