Stoel Rives Law Firm : Stoel Rives World of Employment : Disabilities, FMLA, Military Leave, NLRA : Western United States

President Obama is today expected to sign the Hiring Incentives to Restore Employment (HIRE) Act, which in its final form passed The House of Representatives 217-201 on March 4 and the Senate 68-29  on March 17.  Click here to download the final version of the HIRE Act.

Key provisions of the HIRE Act include:

• An exemption from Social Security payroll taxes for private employers for each worker hired in 2010 who previously had been unemployed for at least 60 days;
• A $1,000 income tax credit, or a credit of 6.2% of total wages paid, for private employers for each new employee hired in 2010 and retained for at least 52 weeks and claimed on the employer's 2011 income tax return;
• An extension of the small business “expensing” tax break for one year, allowing small businesses to continue writing off up to $250,000 of certain capital expenditures instead of depreciating them over time;
• A $4.6 billion Build America Bonds program, which would provide an optional direct subsidy payment in lieu of a tax credit for tax credit bonds issued for certain school and energy projects; and
• Expanded federal aid for highway programs estimated to save or create 1 million jobs.

As previously reported in the Stoel Rives World of Employment, a slightly different version of the HIRE Act passed through the Senate on February 24.  While the bill was in the House, several changes were to the Act, including increased funding to the Build America Bonds program and greater flexibility to the hiring tax credit program.

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The Department of Labor has published four model  notices to help employers, plans and individuals comply with the notice requirements of the COBRA subsidy provisions of the American Recovery and Reinvestment Act of 2009 (ARRA).  Each model notice is designed for a particular group of qualified beneficiaries and contains information to help satisfy ARRA’s notice provisions. Click on the title of each to download:

1. General Notice (Full version).   Plans subject to the Federal COBRA provisions must send the General Notice to all qualified beneficiaries, not just covered employees, who experienced a qualifying event at any time from September 1, 2008 through December 31, 2009, regardless of the type of qualifying event, AND who either have not yet been provided an election notice or who were provided an election notice on or after February 17, 2009 that did not include the additional information required by ARRA.  This full version includes information on the premium reduction as well as information required in a COBRA election notice.
2. General Notice (Abbreviated version).  The abbreviated version of the General Notice includes the same information as the full version regarding the availability of the premium reduction and other rights under ARRA, but does not include the COBRA coverage election information.  It may be sent in lieu of the full version to individuals who experienced a qualifying event during on or after September 1, 2008, have already elected COBRA coverage, and still have it.
3. Alternative Notice.  Insurance issuers that provide group health insurance coverage must send the Alternative Notice to persons who became eligible for continuation coverage under a State law. Continuation coverage requirements vary among States, and issuers should modify this model notice as necessary to conform it to the applicable State law. Issuers may also find the model Alternative Notice or the abbreviated model General Notice appropriate for use in certain situations.
4. Notice in Connection with Extended Election Periods.  Plans subject to the Federal COBRA provisions must send the Notice in Connection with Extended Election Periods to any assistance eligible individual (or any individual who would be an assistance eligible individual if a COBRA continuation election were in effect) who (1) had a qualifying event at any time from September 1, 2008 through February 16, 2009; and (2) either did not elect COBRA continuation coverage, or who elected it but subsequently discontinued COBRA.  This notice includes information on ARRA’s additional election opportunity, as well as premium reduction information. This notice must be provided by April 18, 2009.

For more information about the COBRA subsidy, click here to read our coverage at the Stoel Rives World of Employment.  Or, click here to go to the Department of Labor's COBRA Subsidy Website. 

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The Department of Labor's Employee Benefits Security Administration has just released a salvo of new forms and information on the COBRA subsidy.  Click on the titles below to download:

• COBRA Premium Reduction Fact Sheet
• Job Loss Poster (8½" x 11")
• Loss Poster (11" x 17")
• Flyer for Employers • Flyer for Employees
• COBRA Continuation Health Coverage FAQs for Employees
• COBRA Continuation Health Coverage FAQs for Employers
• IRS Information on COBRA Premium Reduction
• DOL Information Related to the American Recovery and Reinvestment Act of 2009

Keep watching the Stoel Rives World of Employment for more information on the COBRA subsidy!

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