Cobra Compliance
Paycom’s technology combines the ability for you to track your COBRA activities in your payroll and HR system with the convenience of delegating the administrative headaches and regulation changes of COBRA compliance. The penalties for non compliance can be costly and their avoidance is well worth the outsourcing of this particular HR challenge.
The Paycom Difference is . . .
COBRA Administration is Our Expertise
Since 2005 Paycom’s been helping customers alleviate the headaches of COBRA administration.
- We track over 30 dates for current and former employees who are COBRA eligible.
- For those who elect COBRA benefits, we handle the calls and written correspondence regarding their continued health insurance coverage.
- We receive the health insurance premium payments and reconcile payments on a daily basis.
- COBRA clients receive monthly statements detailing all COBRA activity.
Integrated COBRA Compliance
With one application for payroll, HR and COBRA, you eliminate the duplicate efforts required to communicate with multiple programs.
- When you enter a COBRA qualifying event in the payroll system like a health care deduction or the termination of an employee, the system automatically prompts you to send the required correspondence.
We Send the Required Notices for You
The system automatically prompts you when to send COBRA notices and Paycom generates the letters and sends them from our offices.
- We can send up to 30 different letters based on varying circumstances including Initial Notices, Election Notices, coupons and late payment reminders.
- Required notices are sent via Certificate of Mailing the next business day after a qualifying event is entered.
We Monitor New Regulations and Adjust our System and Procedures as Needed
As The American Recovery and Reinvestment Act of 2009 showed us, COBRA regulations can change quickly and Paycom’s developers are equipped to immediately implement the necessary changes to our proprietary software. Our updates in the last year gave users the ability to:
- Track whether an employee was terminated voluntarily or not.
- Choose from sending a standard COBRA Election Notice or a Stimulus COBRA Election Notice upon termination of an employee.
- Receive instant credit for their COBRA subsidy reimbursement amounts with each payroll.
- Report on all former employees receiving the COBRA subsidy.
- Track and report on the information required for subsidy reimbursement.