Help Your Clients Comply With New COBRA Regulations!
What are the new COBRA requirements you and your clients need to know? Find out how you can help your employer clients remain free of scrutiny and penalty. Learn more now.
May 4, 2009
Although April 15th has passed, be careful not to escape too soon to the golf club, beach or other well-deserved “relaxation haven.” Several specific provisions of the Economic Stimulus Plan, signed on February 17th, came with a 60-day deadline — which was April 18th, 2009.
The Stimulus Plan includes changes that businesses will quickly need to accommodate if they have had, or anticipate, a reduction in workforce from September 1, 2008 through December 31, 2009.
New COBRA requirements effective for periods of coverage beginning on or after February 17, 2009:
Action plan: Identify which clients offer group health and educate them on the new requirements, due dates, and implications to Form 941. Be sure to consider your state-specific laws (if applicable).
TO MAKE YOUR KICK-START EASY, we have created a simple client letter that you can put on your letterhead, e-mail, or e-newsletter to push out to clients right away. You’ll find this firm-customizable tool — in both English and Spanish — at www.paychex.com/stimulus.
** To listen to a pre-recorded Economic Stimulus Webcast hosted by Paychex, AICPA and distinguished lecturer Sid Kess, CPA, which contains specific Making Work Pay and COBRA provision details, please visit www.paychex.com/stimulus.
CPAs have a tremendous opportunity to deliver critical client value right now. The liability exposure to business owners subject to COBRA is at unprecedented levels. With unemployment so high, many individuals will be seeking benefits and calling upon former employers to take appropriate action, or expose those employers who do not. You, the CPA, can be the reason why your employer clients remain free of scrutiny or penalty. Your effort provides enhanced protection to clients from COBRA fines of up to $110 PER DAY. Most importantly, you’ll be demonstrating to your clients that you are the trusted adviser necessary to their business’s overall health.