Late Reporting Penalties

HRQ

Does anyone know what the potential penalties are for late reporting of COBRA eligibility and 401k terminations?

We constantly struggle with getting supervisors to send us payroll terminations timely. This results in late reporting of COBRA eligible employees, 401k members eligible for withdrawal/rollover, vacation pay liability sitting on the books although it will never be used, etc.

It hasn't come back to haunt us yet, but we are trying to help the supervisors see the potential damages for not reporting to us timely.

I appreciate whatever info you can give. x:-)

NaeNae55

Penalties are up to the judge, but they can impose up to $110 a day (I think). They don't have to impose that much, but if you have a record of non-compliance they will really stick it to you.

Good luck!

Nae

HRQ

Thank you for the quick answer NaeNae!

We set up a "prompt" system so the supervisors are notified every two weeks of employees who are "active" in the payroll system but not earning paychecks, and I'd like to help the supervisors understand why this is such a big deal. $100+ per day is a big deal, and would come straight out of their location's bottom line, should we ever be fined.

AnneHa

...but we are trying to help the supervisors see the potential damages for not reporting to us timely...

I would let them know the personal consequences of not performing up to expected levels for a supervisor. Yes, this could cost your agency $$ in some circumstances, but I would be more concerned that my managment folks could not perform a simple administrative function.


Anne in Ohio

HRQ

We are doing a 1 hour training on submitting all personnel related documentation, including how the supervisors can easily "notice" if we didn't get their forms.

We rely heavily on fax, and the supervisors like to blame the "black hole" when we didn't receive something. The training is intended to take away all possible excuses/reasons, and the next step is to discipline the supervisors for failure to follow the procedure.

We've just been so nice for so long that we've kind of asked for our current problems. x:-8