Unfortunately, it is not easy to comply with COBRA. We find that a great majority of employers, as many as 90%, are not in compliance with COBRA. One reason is that the law is very complex. Another reason is that complying with the law requires great discipline and complete confidence that the actions being taken are correct.
COBRA laws are constantly changing. The language of the law is difficult to read, and harder to interpret. If you cannot document concrete proof of compliance with all aspects of COBRA, you could be liable for ERISA fines (up to $110 per employee per day of noncompliance) and IRS excise taxes (up to $200 per employee per day, if dependents are involved).
For many businesses, COBRA adds additional administrative tasks for business owners that may have limited human resource support. There is little benefit to handling COBRA in-house - but there are many potential liabilities if not handled properly or at all.
Our COBRA services reduce your administrative burden, keep you in compliance and help you avoid COBRA liability.