This page is dedicated to give you information on  insurance and what you need to know.  We do not sell insurance.  Our goal is informational and educational to provide  you with both business and consumer insurance.

COBRA Health Insurance Continuation Premium Subsidy

The American Recovery and Reinvestment Act of 2009 establishes an employer-provided subsidy for employees who involuntarily lose their jobs. The IRS issued a news release Feb. 26 outlining information for employers. Individuals who qualify for the COBRA subsidy premium should see below for more information.

Information for Employers

Do you have questions on how to administer the COBRA continuation premium subsidy to former employees? These questions and answers may help.

Employers should use the updated Form 941, Employer’s Quarterly Federal Tax Return, to report their COBRA premium assistance payments.

The Form 941 Instructions explain how to complete lines 12a and 12b, which address the COBRA premium assistance payments.

Additional information may be found in Notice 2009-27, Premium Assistance for COBRA Benefits.

Information for Employees or Former Employees

Workers who have lost their jobs may qualify for a 65 percent subsidy for COBRA continuation premiums for themselves and their families for up to nine months.

Eligible workers will have to pay 35 percent of the premium to their former employers.

To qualify, a worker must have been involuntarily separated between Sept. 1, 2008, and Dec. 31, 2009. Workers who lost their jobs between Sept. 1, 2008, and enactment, but failed to initially elect COBRA because it was unaffordable, get an additional 60 days to elect COBRA and receive the subsidy.

This subsidy phases out for individuals whose modified adjusted gross income exceeds $125,000, or $250,000 for those filing joint returns. Taxpayers with modified adjusted gross income exceeding $145,000, or $290,000 for those filing joint returns, do not qualify for the subsidy.

More information on the COBRA subsidy is available from the U.S. Department of Labor.

Return to IRS Information on the American Recovery and Reinvestment Act of 2009.



Introduction to Workers’ Compensation Insurance

Workers’ compensation insurance protects a business owner from claims by employees who experience a work-related injury or illness – either sustained on business premises or due to business operations. In all states, most companies are required to carry workers’ compensation insurance for their employees. You will need a separate workers’ compensation policy for this type of coverage. Check with your state insurance department to see what is required for your small business.

Typically, workers’ compensation covers the employee’s medical expenses, rehabilitation costs and lost wages. If you do not have workers’ compensation and one of your employees is injured on the job, your business may be liable for any medical expenses that individual incurs. You might also face fines and penalties for noncompliance.

According to the Small Business Administration, business owners, independent contractors, domestic employees in private homes, farm workers and unpaid volunteers are usually exempt from workers’ compensation eligibility.

If this is the first time you’re purchasing workers’ compensation insurance, the rate will depend on your payroll and your industry. After a few years, your premiums may be based on the actual experience of your company. 


Tips & Considerations Concerning Workers’ Compensation Insurance

Take steps to minimize risk in the workplace, thereby lowering the chances of a worker getting injured.

  • If you own machinery, and it is operated by your employees, you are exposed to the risk of serious injuries. Always provide goggles, gloves and other recommended safety gear to help prevent accidents.
  • Keep office space in good physical condition. Maintain carpeting and railing on stairs. Make sure telephone and computer wiring is in good working condition and does not create any hazards.
  • The U.S. Department of Labor’s Occupational Safety & Health Administration (OSHA) offers specific information by industry type and provides other helpful resources to small businesses on how to comply with safety requirements that can limit work injuries. To learn more about OSHA’s guidance to small businesses, visit the OSHA Web site at


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