Failure to Comply
Employers who fail to comply with the COBRA Rules can incur an excise
tax of $ 1 00 per affected beneficiary for each day of non-compliance.
If the failure to comply is not intentional, but due to "reasonable cause,"
the maximum excise tax is limited to 10% of the prior year's group health
plan costs (with a maximum of $500,000).
This document was last modified on July 26, 1999
Copyright ©1999, The Jacobs Company, All Rights Reserved