| What is Cobra? Some of the most important and useful records that are kept by the payroll company is hire and termination dates and reasons for termination. These records provide valuable information to the employer so that they can determine if an employee is eligible to be re-hired, length of employment to determine benefits and changes in payroll incentives, and COBRA (Consolidated Omnibus Budget Reconciliation Act) eligibility. An employee who receives medical coverage is eligible for COBRA which allows them to pay the full premium (actually 102%) of their insurance and maintain coverage without interruption. While this can be extremely costly to the employee, it is beneficial to maintaining coverage with no lapse between employers and breaks in service. COBRA coverage is required by law for employers who provide insurance (generally, employers with over 20 employees). Not all types of insurance are covered under the law, such as short-term and long-term disability, and life insurance. Some policies are portable and employees are given the option of taking the policy with them at their expense when they leave employment, but it depends on what is allowed by the insurance carrier. Insurance coverage under COBRA refers to policies that include health and dental. Additionally, the law outlines who will be covered and time limits on the length coverage can be continued. Information is kept with the online payroll company who can provide their clients with detailed information and downloads whenever they need it. The information is kept securely and can also protect sensitive personal information from getting into the wrong hands. The flexibility an online service provides is priceless. Employers are able to logon to the payroll service website and upload or enter employee information when the time is best for them, then the rest of the work is completed automatically. These reports are compatible with common popular software companies like Microsoft, Intuit, Peachtree. |