Record Keeping Requirements for the COBRA Subsidy Reimbursement under ARRA

At this point in time, no additional information relating to the COBRA subsidy reimbursement under ARRA is to be submitted with Form 941. However, those claiming the credit must maintain supporting documentation for the credit claimed. Such documentation includes:

• Information on the receipt, including dates and amounts, of the assistance eligible individuals' 35% share of the premium.
• In the case of an insured plan, copy of invoice or other supporting statement from the insurance carrier and proof of timely payment of the full premium to the insurance carrier required under COBRA.
• In the case of a self-insured plan, proof of the premium amount and proof of the coverage provided to the assistance eligible individuals.
• Attestation of involuntary termination, including the date of the involuntary termination (which must be during the period from Sept. 1, 2008, to Dec. 31, 2009), for each covered employee whose involuntary termination is the basis for eligibility for the subsidy.
• Proof of each assistance eligible individual's eligibility for COBRA coverage at any time during the period from Sept. 1, 2008, to Dec. 31, 2009, and election of COBRA coverage.
• A record of the SSN's of all covered employees, the amount of the subsidy reimbursed with respect to each covered employee, and whether the subsidy was for one individual or two or more individuals.
• Other documents necessary to verity the correct amount of reimbursement.
• A report of the amount of payroll taxes offset pursuant to ARRA for the reporting period and the estimated offsets of such taxes for the subsequent reporting period in connection with reimbursements under ARRA.
• The Secretary of Labor shall issue such regulations and other guidance as may be necessary or appropriate to carry out the purpose of ARRA. Therefore, additional requirements may be added later.