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The Detroit Chapter posts payroll-related notices of meetings, educational events, and networking/benchmarking opportunities, supplied by the provider, as a service to the Michigan payroll community. To post on this bulletin board, email the event or opportunity information (as an MS Word document, HTML code or simply a text message) to webmaster@apadetroit.org. The APA Detroit Chapter posts these notices as a service. Posting does not imply endorsement or support of these notices. There currently is no charge for this service. ______________________________________________________________________________
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COBRA Subsidy Period Extended Late on March 2, 2010, the President signed into law the Temporary Extension Act of 2010 (HR 4691). Among other provisions, this law extends the COBRA subsidy eligibility period under ARRA to March 31, 2010. After much debate, the Senate passed the bill by a 78-19 vote before the bill went to the President. As with ARRA, the changes affect continuation coverage offered under COBRA and any comparable state law. As with its COBRA predecessors, this law takes immediate effect. The law makes the following changes: o New Sunset Date: It extends the COBRA subsidy eligibility period (for Qualifying Events on or after September 1, 2008) through March 31, 2010. This period had expired on February 28, 2010. Recall that the subsidy is a 65 percent discount off the regular COBRA premium for up to 15 months. Only Assistance Eligible Individuals (AEIs) qualify for the subsidy. o Expanded Eligibility: The law provides the subsidy for an additional group of Qualified Beneficiaries. The ARRA subsidy is now available to individuals who experience a reduction in hours followed by an involuntary termination of employment that occurs on or after March 2, 2010, and on or before March 31, 2010. The prior rule was that involuntary terminations of employment and reductions in hours "in anticipation" of involuntary terminations were the only Qualifying Events eligible for the subsidy. The term "in anticipation" was undefined and difficult to administer. o Enhanced Enforcement: If a plan sponsor or insurance carrier continues to deny a subsidy request even after the DOL has ruled that it should be approved, a penalty of up to $110 per day may be issued. This penalty would start 10 days after the plan sponsor or insurance carrier received the DOL's determination. o Employer Determination Safe Harbor: Employer determinations to provide the subsidy are deemed valid as long as the determination is based on a reasonable interpretation and the employer maintains supporting documentation. The significant change involves the expanded eligibility related to reduction in hours. This rule only applies to periods of coverage beginning after March 2, 2010. Most COBRA periods of coverage start on the first of the month so the first subsidized coverage period would start on April 1, 2010. Some Qualified Beneficiaries with a reduction in hours Qualifying Event may never have elected COBRA or at some point discontinued COBRA. For those individuals, a new special election right exists if they are terminated involuntarily on or after March 2, 2010, and on or before March 31, 2010. Plan administrators must notify them of their rights within 60 days of the involuntary termination of employment. These special election rules operate in the same way as last year's ARRA special election rules. AEIs making the special election do not have to pay for any gap in coverage between the two Qualifying Event dates. Any gap in coverage is not treated as a "break in coverage" under HIPAA portability rules. The new law does not change the length of the COBRA maximum coverage period. It is still based on the original reduction in hours Qualifying Event date. Also, the COBRA maximum coverage period may have already expired for some of these individuals; in such an event, this law does not provide them with more COBRA coverage simply because they were involuntary terminated during the March 2-31, 2010, time frame. The subsidy period (up to 15 months) is based on the first coverage period after the March 2, 2010, date of enactment (i.e., April 1, 2010, for most plans). This extension will probably not be the last one. The Senate is considering HR 4213, which was amended by Senate Amendment 3336. This bill would extend the subsidy eligibility period to December 31, 2010. This law also addresses Medicare physician payments, unemployment insurance benefits and surface transportation programs, among other things. ____________________________________________________________________________
Internal Revenue Service Webinar—1099 MISC Filing Requirements for State & Local Governments. Click here for information on this free March 30, 2010 webinar. ____________________________________________________________________________
Ultimate Software, our Platinum Sponsor, presents an HR Power Clinic on March 25, 2010 at the Sheraton Novi. Topics include “Strategic Planning for HR/Payroll Professionals,” “How to Convince your CEO and CFO to Approve a Major Investment,” and “Are you up to date with the changes to FMLA?” Click here for complete meeting details and registration information.
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Click here for the Fact Sheet from the Michigan Unemployment Insurance Agency regarding additional FUTA tax.
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