The $100 per-day excise tax accrues for each day of noncompliance during which period?

• A. The noncompliance period
• B. The calendar year
• C. The calendar quarter
• D. The tax year

Answer: (A)

The main idea here is that the $100 per-day excise tax is based on how long the failure lasts, not on a fixed calendar window. The tax accrues for each day the plan sponsor remains noncompliant with COBRA requirements. The counting starts on the day the failure occurs and continues day by day until the issue is corrected. Because it’s tied to the duration of noncompliance, it isn’t measured by a calendar year, calendar quarter, or a standard tax year—it's the actual noncompliance period that drives the tax. For example, if the required COBRA notice was not provided for 15 days, the tax would accrue for those 15 days, regardless of what calendar period those days fall into.