If the employee is required to pay only 35% of the premium, how is the employer reimbursed for the remaining 65% of the premium?
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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. More.
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