ACA Reporting
ACA Compliance Lessons Learned From Recent Reporting Seasons
Common themes emerge when reflecting on recent ACA reporting seasons that can help employers reduce administrative burdens and improve accuracy.
COBRA
Question of the Week - Missed COBRA Notice
Q.- What happens if we forget to send a COBRA qualifying event letter to a terminated employee?
Q.- What happens if we forget to send a COBRA qualifying event letter to a terminated employee?
A.- There are strict timing rules for furnishing a COBRA qualifying event notice. You should send the notice as soon as the error is identified. Under federal COBRA rules, employers must notify their COBRA administrator within 30 days after the qualifying event occurs (such as termination or reduction in hours). The COBRA administrator is required to mail the letter within 14 days of the notification. If the notice is delayed or not sent, the employer could be subject to penalties from the Department of Labor up to $110 per day per affected individual. It is possible a court could also hold the employer responsible for the cost of claims incurred during the lapse.
Benefit Allocation Systems (BAS) provides online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
MyEnroll360 integrates with major insurance carriers for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and others), and with leading payroll platforms for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and others).
This article is for informational purposes only and is not intended as legal, tax, or benefits advice. Readers should not rely on this information for taking (or not taking) any action relating to employment, compliance, or benefits. Always consult with a qualified professional before making decisions based on this content.
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