Key Provisions In The Economic Stimulus Law Make Outsourcing Your Payroll Processing Services More Attractive

The IRS has made reacting to the much more onerous COBRA provision contained in the new law a top priority. As the number of participants grow, more businesses may be interested in choosing to outsource this to a payroll processing services provider as the work and liability tied to it will increase exponentially. Not all companies that offer payroll services administer COBRA.While larger national payroll processing services companies usually administer COBRA, most local ones do not. Utilizing your payroll services COBRA administration has certain advantages over using your health carrier's: a health care provider may just provide COBRA for their specific health plan, but not include other eligible services, such as Dental. In addition, some larger or multi-state companies may have several health insurance choices; relying on your payroll outsourcing services provider to administer COBRA eliminates this conflict. While many companies do their payroll processing and related benefits administration in-house, many companies are increasingly choosing to use payroll outsourcing services. Two key changes in benefits law are listed below: First, a Temporary COBRA Premium Assistance has been included in The American Recovery and Reinvestment Act. This COBRA Premium Assistance provides a subsidy of 65% of the cost of COBRA coverage for nine months to certain individuals. The subsidy's provisions are effective immediately and plan sponsors must comply with them now.