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TAMRA – Your Guide to Staying COBRA Compliant

Like many HR and benefits related topics, COBRA has its own unique complexities and sometimes it’s hard to remember all of the laws and acts associated with it.

Have you heard of TAMRA?

TAMRA stands for Technical and Miscellaneous Revenue Act – passed in 1988 by congress as a guide to evaluate whether or not an employer meets COBRA compliance. (How convenient!)

Here are the four TAMRA guidelines:

  1. Proof of training for those responsible for COBRA compliance
  2. Written instruction for administering COBRA
  3. The COBRA program has been designed and updated based on competent professional advice
  4. Independent auditors are monitoring the COBRA program

COBRA compliance consists of notification procedures, notice language, monitoring COBRA time frames, consistency in applying COBRA provisions, adherence to COBRA terminating events, and accurate calculation of premium rates.

You can avoid penalties and failure to comply to COBRA if you take the time to review these items. Payroll Systems Administrators can take care of this for you! Visit our FAQs page if you are interested in knowing if your company is required to offer COBRA coverage.

If you fail to comply with these COBRA guidelines, an excise tax will be imposed by the IRS. $100 per day per violation for one individual or $200 per day per violation for two or more individuals.

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This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.