New COBRA Audit Guidelines

Are you prepared for a COBRA audit?

The Consolidated Ombibus Budget Reconciliation Act of 1985 (COBRA) requires employers' group health plans provide certain employees and their family members the right to temporarily continue health coverage under the plan at group rates.

This topic will help you comply with COBRA by understanding which of your employees are eligible for COBRA rights (‘qualified beneficiaries'), when they become eligible for COBRA (‘qualifying events') and what happens if an employee elects COBRA continuation coverage. Further, in March 2012, the IRS released a publication titled ‘Audit Techniques and Tax Law to Examine COBRA Cases.' This publication signifies increased audit activity on COBRA compliance.

This information will also help you identify and prepare for the areas of focus in an IRS COBRA audit. The topic will help you prepare for an IRS COBRA audit by explaining what you should be doing to comply with COBRA, how to respond to an auditor's document request, and what to expect if the auditor asks to interview you. This information is critical for employers to properly prepare for an IRS COBRA audit and avoid the significant penalties that may apply.

History of COBRA and Oversight Agencies

• Consolidated Omnibus Budget Reconciliation Act of 1985
  
  • Purpose of COBRA
    
  • Qualified Beneficiaries
    
  • Qualifying Events
    
  • COBRA Continuation Coverage
    
  • Notices
    
  • Payments and Premiums
    
• Internal Revenue Code and Internal Revenue Service
  
• Employee Retirement Income Security Act (ERISA)
  
• Public Health Service Act

IRS Audit Techniques and Law to Examine COBRA Cases

• Initial IRS Screening of COBRA Cases
  
• IRS Examiner's Documentation Request
  
• Personnel Records
  
• Auditor's Interview
  
• IRS Penalties
  
  • Liable Persons
    
  • Maximum Penalty
    
  • Minimum Penalty
    
  • Special Rules
    
• IRS Correction
  
• Self-Reporting Requirement

Recommendations for Employers

• CPE
• SHRM
• NASBA

• HR Certification Institute

For Detailed Credit Information page click here

Only registered attendee will receive continuing education credit.

Matthew R. Zischke, Dykema Gossett PLLC

• Attorney in Dykema Gossett PLLC’s Bloomfield Hills, Michigan office
• Primary focus on providing employee benefit advice to publicly owned, nonprofit, private, and governmental employers
• Focuses practice on providing ERISA, IRC, DOL, PPACA, COBRA and HIPAA compliance advice regarding pension plans, 401(k) plans, 403(b) plans, ESOP plans and other retirement and welfare plans
• Has experience with representing clients before the IRS with respect to qualified retirement plan Voluntary and Self Compliance Programs, Letter of Determination Applications, and Private Letter Ruling Requests
• Prior to joining Dykema, he provided advice to multiemployer defined benefit, defined contribution, insurance and welfare, supplemental unemployment, apprenticeship and retiree fringe benefit funds
• Prior to attending law school, he worked for several years in the management of union and nonunion production facilities
• Licensed to practice in Michigan and in the U.S. District Court for the Eastern District of Michigan. He is a member of the American Bar Association, Michigan Bar Association, Oakland County Bar Association, International Foundation of Employee Benefit Plans, and the Detroit Economic Club
• J.D. degree, University of Detroit Mercy School of Law; M.B.A. and undergraduate degrees, Central Michigan University
• Can be contacted at 248-203-0715 or mzischke@dykema.com