Ceridian uniquely qualified to assist employers with COBRA subsidy and other aspects of stimulus package
From the March 2009 issue of Ceridian Connection.
The new COBRA legislation that is part of the American Recovery and Reinvestment Act (ARRA) will affect employers, but it doesn't have to add more challenges during already difficult times. As the nation's leading COBRA administrator, Ceridian is working closely with the appropriate government agencies and employers to resolve questions in a timely manner.
"At Ceridian, we are well equipped to handle subsidies," said Susan Santos, product manager for Ceridian Benefits Continuation Services. "We've accommodated various employer subsidies for our clients for many years, so we have already built the administrative and system expertise to handle them."
Within 30 days of enactment of the ARRA, the U.S. Department of Labor is expected to provide guidance and model notices that will need to be communicated to workers who were terminated.
"We won't know all of the specifics about the new COBRA administration requirements until we receive the model notice from the government," explained Santos. "We have already sent communications to our clients regarding the newly enacted legislation and will continue to provide regular updates as we receive new information."
Unemployed workers who qualify for the new COBRA subsidy are eligible for the first period of coverage on or after February 17, 2009, but those who elect COBRA will get a regular COBRA bill and will pay 100 percent of the premium until all notices are received. Once the new COBRA legislation notices are finalized, workers who opted for the subsidy and are eligible will receive a refund or credit of the 65% to the first period of coverage paid on or after February 17, 2009.
"Ceridian will act as quickly as possible to accommodate the reduction in premium," said Santos. "We have requirements to keep employers in compliance and will follow the required time frame."
The stimulus is by far the largest government economic initiative in more than 60 years. And with it come many administrative and compliance challenges that will need to be carried out in a short period of time. In addition to preparing employers to deal with the COBRA subsidy, Ceridian is updating tax tables for the April 1 start of the Making Work Pay payroll tax credit.
"Our goal is to be here to help our clients get through the required changes and be in compliance," said Santos.
As a public service to help employers and the public, Ceridian's LifeWorks Employee Assistance Program is making several resources available to help Americans cope with economic issues in 2009.
Resources for employees
As your benefits administration partner, Ceridian is committed to providing you with the most current and accurate information on the economic stimulus package as well as how it affects your company. Our COBRA Administration Services are uniquely able to help manage the liability, expense and burdens associated with the complex, constantly evolving COBRA laws confronting employers today. And Ceridian's Commuter Administration Services can help decipher the newly passed legislation related to commuter parking benefits (see article below). This frees your staff from the administrative burdens of managing a transportation reimbursement program while offering your employees an eco-friendly approach to carpooling.
Visit this Web site often for the latest updates on the ARRA and more information about Ceridian Benefits Continuation Services.
The new COBRA legislation that is part of the American Recovery and Reinvestment Act (ARRA) will affect employers, but it doesn't have to add more challenges during already difficult times. As the nation's leading COBRA administrator, Ceridian is working closely with the appropriate government agencies and employers to resolve questions in a timely manner.
"At Ceridian, we are well equipped to handle subsidies," said Susan Santos, product manager for Ceridian Benefits Continuation Services. "We've accommodated various employer subsidies for our clients for many years, so we have already built the administrative and system expertise to handle them."
Within 30 days of enactment of the ARRA, the U.S. Department of Labor is expected to provide guidance and model notices that will need to be communicated to workers who were terminated.
"We won't know all of the specifics about the new COBRA administration requirements until we receive the model notice from the government," explained Santos. "We have already sent communications to our clients regarding the newly enacted legislation and will continue to provide regular updates as we receive new information."
Unemployed workers who qualify for the new COBRA subsidy are eligible for the first period of coverage on or after February 17, 2009, but those who elect COBRA will get a regular COBRA bill and will pay 100 percent of the premium until all notices are received. Once the new COBRA legislation notices are finalized, workers who opted for the subsidy and are eligible will receive a refund or credit of the 65% to the first period of coverage paid on or after February 17, 2009.
"Ceridian will act as quickly as possible to accommodate the reduction in premium," said Santos. "We have requirements to keep employers in compliance and will follow the required time frame."
The stimulus is by far the largest government economic initiative in more than 60 years. And with it come many administrative and compliance challenges that will need to be carried out in a short period of time. In addition to preparing employers to deal with the COBRA subsidy, Ceridian is updating tax tables for the April 1 start of the Making Work Pay payroll tax credit.
"Our goal is to be here to help our clients get through the required changes and be in compliance," said Santos.
As a public service to help employers and the public, Ceridian's LifeWorks Employee Assistance Program is making several resources available to help Americans cope with economic issues in 2009.
Resources for employees
As your benefits administration partner, Ceridian is committed to providing you with the most current and accurate information on the economic stimulus package as well as how it affects your company. Our COBRA Administration Services are uniquely able to help manage the liability, expense and burdens associated with the complex, constantly evolving COBRA laws confronting employers today. And Ceridian's Commuter Administration Services can help decipher the newly passed legislation related to commuter parking benefits (see article below). This frees your staff from the administrative burdens of managing a transportation reimbursement program while offering your employees an eco-friendly approach to carpooling.
Visit this Web site often for the latest updates on the ARRA and more information about Ceridian Benefits Continuation Services.
| Raising the cap for commuters
The stimulus also provides a boost for workers who commute to their jobs. A new provision temporarily increases the amount of transit pass and vanpooling benefits that can be excluded from an employee's income under Internal Revenue Code Section 132(f). Effective March 1, 2009, and indexed through the end of 2010, the monthly cap on pretax transit reimbursement and voucher and fare media purchases will be equal to the parking reimbursement limit, currently $230. This increase expires Dec. 31, 2010, which means the transit limit will revert to its current level Jan. 1, 2011 unless Congress or the Treasury Department takes action before then. "While the employer is not required by law to implement the new cap, Ceridian is prepared to make the changes necessary to increase the limits for our Ceridian Commuter Administration Services clients and their participants," said Geri Lodato, Ceridian product manager. |
