The federal law known as COBRA generally allows an employee terminated from employment to continue employer-provided health insurance coverage for up to

18 months. Under the new economic stimulus law, workers "involuntarily terminated" between September 1, 2008, and December 31, 2009, may be able to pay only 35% of the required premiums for a nine-month period. Employers must pay the balance.

However, if your company must make COBRA payments for employees who have been laid off or fired, your business is eligible for a new payroll tax credit. Alternatively, you may be able to reduce regular required tax deposits.

The IRS recently issued guidance for employers on this issue. Contact a tax professional for assistance.