ACA compliance is a little like driving on a long road trip: when the “check engine” light comes on, you can keep cruising for a while, but the longer you ignore it, the bigger (and more expensive) the breakdown becomes. 

For PEOs, those warning lights are there if you know what to look for. Catch them early, and ACA filing season runs smoothly. Miss them, and you’re likely pulling over on the side of the road in January, scrambling to fix issues you wish you’d tackled months earlier. 

Here are three telltale signs your PEO may be headed for ACA filing trouble—and how to course-correct before it’s too late. 

1. You’re Still Untangling Data at Year-End 

If Q4 rolls around and you’re still cleaning up rosters, reconciling control groups, or chasing down supplemental data for mid-year onboarded clients, you’re already behind. 

Why it’s a problem: 

• Year-end is a pressure cooker—W-2s, ACA filings, and client deliverables all land at once. 

• The more you rush data validation, the more likely errors slip through (and errors can mean penalties). 

• Complex cases—like ICHRAs or age-banded plans—require extra setup that you won’t have time for if you’re racing the clock. 

It’s like trying to put together IKEA furniture at midnight the night before houseguests arrive. Technically, you can do it. But will it be sturdy? Probably not. 

How to fix it: Start reviewing FTE counts, control groups, and client rosters in Q3. The earlier you catch inconsistencies, the easier they are to resolve. 

2. Your ACA Tracking Feels Like an Afterthought 

ACA tracking isn’t just a box to check—it’s the heartbeat of compliance. If your system for tracking eligibility and measurement periods is messy, inconsistent, or running on outdated processes, trouble is coming. 

Why it’s a problem: 

• You can’t retroactively offer coverage. If an eligible employee slips through the cracks, that’s a penalty waiting to happen. 

• Rehires, part-timers crossing the 130-hour threshold, or employees working across multiple locations create “sticky” scenarios that take time to research. 

It’s like trying to remember if you watered a plant three weeks ago. Without a system, it’s guesswork—and guesswork doesn’t cut it with the IRS. 

How to fix it: Invest in reliable ACA tracking and audit it regularly. Don’t wait until January to discover gaps in coverage offers. 

3. Your Clients Are Asking Questions You Can’t Answer Quickly 

If client emails start piling up in December—questions about affordability, control group status, or whether they’re considered an ALE—you may already be in the danger zone. 

Why it’s a problem: 

• A lack of clarity erodes client confidence. 

• Late answers slow down the entire filing process. 

• Rushed communication means important details get missed. 

It’s like being the last table in a crowded restaurant waiting on your food. The longer it takes, the more frustrated everyone gets. 

How to fix it: Educate clients early, and set expectations well before Q4. When you get ahead of their questions, you reduce last-minute firefighting and keep the relationship strong. 

Get Ahead Before Trouble Hits 

If any of these signs sound familiar, don’t panic—just don’t wait. ACA filing trouble usually isn’t about one big mistake; it’s about letting small issues pile up until you’re out of time to fix them. 

At Selerix, we work with PEOs nationwide, and we’ve seen how much smoother the process is when teams start early. The difference is night and day: calm prep versus chaotic catch-up. 

So if you see a warning light blinking on your ACA dashboard, take it seriously. Your January self (and your clients) will thank you for pulling into the service lane now instead of breaking down on the highway later. 

Ready to get your ACA ducks in a row? Let’s talk before the year-end rush.