COBRA Administration & Compliance

The IRS estimates that 90% of all employers that are subject to COBRA are not in compliance. Also, COBRA policies and procedures are a standard component of any IRS corporate audit.

The COBRA concept is simple. Meeting COBRA requirements is not.

PayCom can administer COBRA so you:

• Avoid penalties
• Keep in IRS compliance with notifications, record maintenance, and billings
• Can rely on us to have trained personnel responsible for administration

Avoiding the risks that are involved in keeping compliant with two of the federal government’s most complex and onerous laws is an enormous responsibility. Therefore, PayCom can assist you with this function. We can eliminate this time consuming task from your duties and give you more time to focus on your overall corporate needs.

We have staff dedicated to this function to make sure that everything is completed in a timely and accurate manner.

PayCom provides notifications and services as indicated below:

• Initial Notification by first class mail with proof of mailing to all employees who are participants under a covered benefit plan and to employees who first become eligible under a covered benefit plan.
• Qualifying Event Notification by first class mail with proof of mailing certification by U.S. Postal Service to qualified beneficiaries for qualifying events.
• Certificate of Coverage Notification: Initial Certificate included with Qualifying Event Notification and Second Certificate following termination of COBRA.
• Update notifications by first class mail to covered employees, COBRA participants, and/or qualified beneficiaries as may be required by amendments to the acts and the regulations, or changes to covered benefit plans.
• Termination notification upon nonpayment of premium or end of COBRA term.
• Billing, premium collection, and remittance to company. PayCom will retain any administrative fees added to premiums charged by the insurer.

PayCom Responsibilities and Duties in addition to Services:

• Maintain computer/electronic and/or physical records of all notices.
• Maintain a database of qualifying beneficiaries to whom any notifications have been sent. Data will include all pertinent information reported by the employer.
• Provide employers with confirmation reports of all activities.
• Notify employer of any discrepancies or conditions it discovers during the course of its operations that may require action by the employer.
• Notify employer of known changes or updates relating to compliance with the Act.

For more information on how PayCom can administer your COBRA requirements, please contact us.