Update Jan. 21, 2015: The COBRA premium assistance credit was available to an employer for premiums paid on behalf of employees who were involuntarily terminated from employment between Sept.1, 2008, and May 31, 2010. The COBRA premium assistance credit is not available for individuals who were involuntarily terminated after May 31, 2010. Therefore, only in rare circumstances, such as instances where COBRA eligibility was delayed as a result of employer-provided health insurance coverage following termination, will the credit be available. Certain individuals who are eligible for COBRA continuation health coverage, or similar coverage under state law, may receive a subsidy for 65 percent of the premium. These individuals are required to pay only 35 percent of the premium. The employer may recover the subsidy provided to assistance-eligible individuals by taking the subsidy amount as a credit on its quarterly employment tax return. The employer may provide the subsidy — and take the credit on its employment tax return — only after it has received the 35 percent premium payment from the individual. Review our question and answer pages to find the information you need on: Administration and Eligibility Form Preparation for Pre-2014 Tax Periods Form Preparation for Post-2013 Tax Periods Reporting and Documentation Taxability and Recapture Visit the Department of Labor Web site for information related to COBRA eligibility and the subsidy. Benefits advisors are also available to assist you at 1-866-444-3272. Return to: COBRA Health Insurance Continuation Premium Subsidy. IRS Information Related to Tax Provisions in the American Recovery and Reinvestment Act of 2009.