If caught out of compliance, like Krawschison, your organization could not only face severe penalties, but in some cases the benefits administrator and owner may even be considered personally liable. Employers must also monitor new court interpretations and legislative changes that may cause noncompliance. All are time consuming tasks that draw staff away from their core competencies and detract from your core business activities. There is a solution. Economies of Scale Unlike employers whose human resources departments perform many tasks, a well-qualified benefits administration service bureau has dedicated staff members whose sole job is administering benefits.
Efficiency comes from having performed each task hundreds, thousands or even millions of times.
Once the database has been updated, employers must continue to inform the service bureau about employee Qualifying Events. Some service bureaus facilitate this process electronically. A service bureau's toll-free help desk is an important resource for your employees. Accurate and timely billing practices as detailed below can help avoid both late payments and payment disputes. Mail a monthly invoice approximately two weeks prior to the payment due date.