Paychex Adds COBRA Administration Services to HR Products

August 16, 2006 ( - Paychex Inc., which provides payroll, human resource and benefits outsourcing solutions, has added COBRA Administration to its offering for employers with small and medium-sized businesses.

“By relieving our clients of the tasks of notification, collection, remittance and administration of their COBRA requirements, Paychex delivers a comprehensive service to both the employer and the separated employee,” said Vice President of Sales Tony Tortorella of Paychex Human Resource Services, in a press release.

Paychex offers COBRA and state continuation services. COBRA applies to employers with 20 or more employees and requires most group health plan sponsors to give employees and their beneficiaries the option of keeping their health coverage for a certain period after termination, and state continuation services apply to employers with 19 or less employees.  

The new product by Paychex will allow employers to:

  • Set up and maintain COBRA and state continuation programs;
  • Send timely notices to qualified employees;
  • Collect and remit participant payments;
  • Track terminations;
  • Help comply with all COBRA-mandated programs;
  • Answer questions via a toll-free customer service line for employers and employee participants.