What You Need to Know About COBRA and ACA Reporting
November 12, 2020
What does the ACA require when you offer COBRA?
To comply with reporting requirements associated with the ACA, clients are required to report certain data for their active employees to the IRS. That data can include when the required coverage was available, each employee’s costs, and more. In the event the employee is terminated or offered COBRA due to any other reason, those reporting requirements continue through the COBRA offer or coverage period.
How is ACA reporting data compiled for COBRA?
COBRA is a little more tricky for employers, because the data they need isn’t readily available. Some employers collect the data from various systems and vendors, while others are outsourcing the filing of ACA reporting to a vendor. Outsourcing the filing saves you time, because data collection would likely require manual work.
What should you look for when outsourcing?
Working with a third-party administration that’s developed industry-leading integrations eliminates your need to handle any ACA data for COBRA or direct bill members. We’ve developed integrations that allow us to provide fully automated ACA reporting, which gives you more free time at your busiest employee benefits time of the year. Our integrations send files to your vendor on any frequency, which ensures data integrity is monitored year-round.
Want to learn more about simplifying your COBRA? Complete the form below to get your free eBook to see how automation and integration can make your administration even better!The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.