Last week we talked about new requirements being placed on employers as a result of President Obama’s economic stimulus package. Terminated employees are getting a 65 percent federal subsidy if they elect continuing health care coverage through their former employer under COBRA, but it’s the former employer that has to initially pay that portion of the premium. The employer must then maintain certain documents in order to receive reimbursement in the form of a federal payroll tax credit.

Now we have more information. Specifically, employee benefit law attorneys Wally Miller and Kirk Reynolds of Gleaves, Swearingen, Potter & Scott LLP have written up a list of Frequently Asked Questions (PDF) explaining many of the particulars. These include such sticky wickets as what happens with the employee terminated for cause, the employee who agrees to a mutual separation, the well-paid employee making an adjusted gross income of $125,000 or more, and many others. There are many, many nuances, so this information is well worth reading. (Note: information provided via CFP, Inc., and the Oregon Association of Nurseries.)