Pain-Free Section 125 & COBRA Administration

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 as well as monthly updates for qualifiers who need to be added or terminated from benefit coverage.

Section 125 benefits save both you and your employees money by reducing the amount of taxes owed on income received by your employees.  While one of the most valuable, section 125 is also one of the most widely misunderstood benefits offered by employers. Non-compliant Flexible Spending Accounts can be very costly. Dominion Payroll Services can perform reviews on these plans to identify key problem areas and provide “best-practice” integration to our payroll system participation mapping. In addition, Dominion Payroll 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:

• 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.

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% back to you.

Section 125/Flexible Spending Account Summary

Flexible Spending Accounts are becoming more popular because they provide 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 come out automatically when the payroll process, and reimbursements can be handled through payroll as well, eliminating the need for a separate bank reconciliation of your reimbursement checks. To encourage plan participation, we even can provide custom enrollment materials and plan documents!