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Dominion Payroll Services offers complete COBRA Services and full Section 125 Administration. The Consolidated Omnibus Budget Reconciliation Act requires that many employees be given the opportunity to extend health coverage beyond their date of employment. Our COBRA Service includes all required mailing of notices and collections and monthly updates for qualifiers to be added or terminated from benefit coverage.
IRS Section 125 is one of the most valuable and widely misunderstood benefits offered by employers. Non-compliant Flexible Spending Accounts can be very costly. Dominion Payroll Services will review these plans to identify key problem areas. We can provide “best-practice” integration to our payroll system participation mapping. Dominion Payroll Services also offers FMLA and HIPAA compliance, training, and support.
COBRA Service Summary
DPS will perform the following services on your behalf under COBRA provisions, upon receipt of notice of a qualifying event, as follows:
- timely notice of right to continue coverage to qualified beneficiaries
- notification, collection and remittance to client of premiums due
- late premium notices
- monthly premium and participation reports
- termination of participation notices
- secondary event tracking
- notification, calculation and billing of premium adjustments
- In addition, as requested, DPS provides the initial notice of rights to new hires for an additional fee. DPS bills all qualifying event Employees and remits the premium and summary reports to the client by the 10th of each month for the preceding month. On your behalf, DPS bills 102% of the premium and remits 100% to the client.
Flexible Spending Accounts are becoming more popular because they are a tax benefit for both the employee and the employer. We can help you take advantage of this tax benefit by making the administration effortless. With DPS, Section 125 becomes an integrated part of the payroll process. Deductions are done automatically as well as reimbursements. This means less time dealing with reimbursement checks and it eliminates the need to reconcile that account. And to encourage participation, we provided custom enrollment materials and plan documents when necessary.