Employers cannot claim the new medical premium assistance tax credit under the Consolidated Omnibus Budget Reconciliation Act until they receive the 35 percent payment from the former employee, CCH reports, citing Treasury Department and IRS officials who spoke during an April 6 webcast.

According to CCH, the officials also said being called up to military duty may be an involuntary termination triggering eligibility for the credit. (Affected employers are required to provide a 65 percent federal subsidy towards COBRA coverage for up to 9 months for “assistance-eligible” individuals. “Assistance-eligible” individuals are covered employees involuntarily terminated during the period from September 1, 2008 to December 31, 2009, as well as their spouses and dependent children.)