The IRS evaluates employer records to validate COBRA compliance for companies with 20 or more employees. A joint Department of Labor (DOL) and IRS task force tracks individual complaints for COBRA violations.
What are the implications for employers?
Employers are required to demonstrate COBRA compliance during a corporate income tax audit. The IRS reviews employer’s method for notifying employees regarding qualifying events, records of the employees electing COBRA coverage and information on premiums charged for COBRA continuation.
Companies can be fined by IRS for non-compliance with COBRA regulations.
How can BenefitsAssist, inc. help employers comply?
Notification of group health continuation coverage is issued to newly covered employees and their dependents. BenefitsAssist, inc. tracks the printing and mailing dates for future reference.
When an employee has a COBRA qualifying event, such as termination, reduction in hours, or a change in marital status the employer should notify BenefitsAssist, inc., who will then send notification to the qualifying beneficiary within the timeline required by the IRS.