If the employee is required to pay only 35% of the premium, how is the employer reimbursed for the remaining 65% of the premium?
The employer (or other responsible entity) may recover the subsidy provided to Assistance Eligible Individuals by taking the subsidy amount as a credit on its IRS Form 941 quarterly employment tax return. For more information on the Form 941 credit and the tax provisions in ARRA, visit the IRS web site.
