Posted on 03/02/2009 7:07:47 PM PST by Tweeker
The IRS is in the process of working how just how the Federal Government will pay for 65% of an unemployed person's COBRA per Obama's policy. Well - the Federal Government won't be paying for this up front. The previous employer must collect the 35% of the premium from the employee and come up with the 65% for the balance of the premium. Then when the employer has proof that the premiums have been paid in full he can list them on the Quarterly Federal Tax Form (presently 941). Then he can request the Cobra payments to be applied toward future tax payments.
So now an employer already suffering from the downturn and having to downsize, must find the cash to fund the Cobra and be able to wait up to 6 months or more for the reimbursement. This sis devastating for struggling businesses trying to recover.
Reminds me of when Hillary said in 1993 that she was not responsible for any under-capitalized business who could not fund her health care program.
It’s called “Bend Over” and then pray that you get it back.
wow.
and people wonder why businesses are shutting down.
Alternately, businesses will go under throwing ever more people out of work.
hope you love your change you soon to be former dem business owners that voted for the one...
WTF is wrong with these idiots. Why don’t they just confiscate all businesses and get it over with. This economic death by a thousand cuts is getting old.
Yep. I am sending out COBRA notices today for a reduction in force that a client just had. This is for employees that were involunatarily terminated. Not those who quit.
The other hidden ugly part is that its retroactive to 9/1/2008. So you have to reaudit all employees offered COBRA since 9/1/08 and renotify all involuntarily terminated employees. They get a second chance to elect COBRA even if the had previously declined...
So what happens if the business stops carrying health insurance completely?
Why the he&* can’t an individual by a group policy themselves...and get the da&* third party out of the transaction!!In fact it should be a HPIAA violation for an emplyer to be involved in an employees health in any way!!
So now your new bailout GM will cost $2000 more, and no one can figure out why we buy Toyota’s.
Insane... absolutely insane. Can someone please wake me up from this nightmare?
Maybe we will just stop paying for any of our 32 employees health insurance. I like that idea.
I foresee alot of businesses hiring people as independent contractors to end run this ‘tax’.
There’s a simple out. Terminate all of your health plans. My bet is many employers will be doing it soon.
Last year Neal Boortz was recommending that businesses assess the number of "workers" necessary and reduce the number of "employees". Hire your workers from a temp agency. That provides some insulation form the problem of having your "employees" unionized. If you have a bad "worker", tell the temp agency to send a different person. The COBRA coverage for the laid off employee happens at the temp agency, not inside your small business.
Don’t forget, the law was written to include “state continuation” as well as Federal Cobra. That means that businesses with as few as 2 employees will have to pony up 65% of a health premium that could be as high as $1500 a month or more.
Best keep those 941 forms handy. The law is retroactive to layoffs back to 9-1-08.
I think that is what the socialists want.
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