Reader Claims www.CobraControl.com has Best COBRA Information

basusacobra — Sun, 01 Mar 2009 16:44:13 +0000

A recent www.CobraControl.com site visitor wrote: “This is the best information I have found so far on this subject on the internet, thank you for that. My question is, what if the business is no longer paying any payroll taxes at all, as it has laid off all employees (who are eligible for COBRA) and is just down to the principal partners (who are not taking a salary at this point)? Will the IRS refund the 65% that the employer is expected to pay? Can the employer get the money monthly or will it have to wait for the end of the quarter?

Since this is one of the most frequently asked questions to our call center, we thought it was worth highlighting it with this blog entry as follows:

It appears that the revised Form 941 provides in line 15 a place to identify your credit amount and note whether you want to apply the credit to the next return or to have the IRS send you a refund.

Specifically, Form 941 Instructions state on page 6, Item 15 Overpayment: “If line 13 is more than line 10, write the difference in line 15. Never make an entry in both lines 14 and 15.

If you deposited more than the correct amount for the quarter, you can choose to have the IRS either refund the overpayment or apply it to your next return. Check the appropriate box in line 15. If you do not check either box, we will automatically refund the overpayment. We may apply your overpayment to any past due tax account that is shown in our records under your EIN.

If line 15 is under $1, we will send a refund or apply it to your next return only if you ask us in writing to do so.”

The information contained herein is for informational purposes only and is not intended as legal or tax advice, nor is it intended to advise you of your obligations under ERISA, COBRA, HIPAA or the American Recovery and Reinvestment Act of 2009.

COBRA Control Services, LLC » Payroll Taxes

Reader Claims www.CobraControl.com has Best COBRA Information