ERC & COBRA Subsidy: Compliance & Tax Credits

The American Rescue Plan Act that was signed into law March 2021 brought critical COVID-19 relief to businesses and individuals – and major new compliance requirements for employers.

The most significant provisions are the extension of the valuable employee retention credit (ERC) and the new 100% COBRA subsidy that requires employers to pay premiums for COBRA-eligible employees from April 1 through September 30, 2021, which are reimbursable through tax credits (reduced by ERC and other credit amounts).

Both the ERC and the COBRA subsidy have strict rules, calculations and documentation requirements that will put an additional strain on your Human Resources function. Grassi’s Human Resources consultants and Tax advisors are here to help you ensure compliance and maximize your tax benefit.

On Tuesday, March 30, our advisors  hosted a live video session discussing how to:

  • Maximize the benefit of employee retention credits
  • Understand employer obligations under COBRA subsidy
  • Determine employee eligibility for COBRA subsidy
  • Calculate COBRA credit reduction due to ERC and emergency paid leave credits
  • Comply with documentation and notification requirements