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COBRA Penalties for Non-Compliance

The final regulations outline the statutory excise tax penalties imposed on plans for failure to comply with COBRA.

Specifically, plans that violate COBRA’s provisions may be subject to a non-deductible excise tax penalty equal to $100 per day, per an affected individual, per violation. In addition, ERISA provides notice penalties of up to $110 per day from the date of the compliance failure.

The cumulative nature of this penalty can add up to a sizeable sum very quickly, especially in cases where the employer repeats a violation or series of violations with respect to a large number of individuals.

You’ll have peace of mind knowing that Sheakley will ensure compliance with regards to your COBRA Administration. Remember, with Sheakley…It’s Done!

For more information, please contact:
Sheakley Pension Administration, Inc.
COBRA Benefits Division
1-800-877-6630
email: cobra@sheakley.com