The 2009 Tax Act made changes to the health benefit provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). Eligible former employees who were enrolled in their employer's health plan when they lost their job need only pay 35% of the cost of COBRA coverage, while employers are entitled to a credit for the other 65% of the COBRA cost on their payroll tax return. The IRS posted its first guidance on this new provision to its website (see www.irs.gov/newsroom/article/0,,id=204505,00.html ) that includes questions and answers for employers. (See the next page for related revisions to Form 941.) The IRS also provides information for employees and former employees—in general, an employee must have been involuntarily separated between 9/1/08 and 12/31/09 to qualify. However, the subsidy phases out for individuals whose modified AGI exceeds $125,000, or $250,000 for those filing joint returns. News Release IR-2009-15.