Managing ACA and COBRA compliance is a challenge for any business, but it’s particularly complex for industries with diverse and constantly shifting workforces like agriculture, transportation, construction, hospitality, education, or healthcare. The regulations are complicated, the penalties for non-compliance are steep, and keeping track of employees’ eligibility, hours, and classifications can feel like a never-ending task.
But with the right strategies and tools, you can simplify the process and protect your business from steep fines and penalties — not to mention a mountain of manual work.
Why are ACA and COBRA Compliance So Challenging?
For companies with a mobile or variable workforce, staying compliant with the Affordable Care Act (ACA) and Consolidated Omnibus Budget Reconciliation Act (COBRA) requirements isn’t as straightforward as it might be for a traditional office-based business.
Employees’ hours fluctuate, roles change frequently, and the nature of the work often means workers aren’t always on-site or easily accessible. Missteps in tracking hours or classifying employees can lead to costly fines, legal troubles, and, ultimately, unhappy employees.
Consider the trucking industry: drivers often work irregular hours and may be classified as independent contractors or employees depending on their arrangement with the company. Misclassification or incorrect tracking of full-time status can result in significant penalties under ACA regulations. And it’s not just trucking — construction, energy or agricultural companies with seasonal workers, hospitality organizations with rotating staff, and even gig economy businesses face similar challenges.
So, how can you simplify the process and stay on top of your ACA and COBRA compliance? Here are seven best practices:
7 Best Practices for Managing ACA Compliance
- Plan Ahead: Proactive planning can prevent last-minute scrambles. Start preparing for open enrollment and reporting well in advance to prevent last-minute challenges.
- Regular Audits: Conduct regular internal audits of employee classifications, hours, and benefits eligibility to catch potential issues early.
- Leverage Expert Technology: Use automated and integrated tools to manage time-tracking, reporting, and communications, reducing the burden on your HR team.
- Leverage Automation: Use automated systems for time-tracking and reporting to ensure accurate compliance with eligibility requirements. Implement reminders through systems like Selerix Engage to ensure employees see important communications and complete enrollments and updates on time.
- Integrate Your Systems: Connect benefits, payroll, and HR platforms to maintain up-to-date employee data and streamline compliance processes.
- Diversify Communication Channels: Use texts, emails, and software — in channels employees will actually use — to elevate important messages and keep employees informed about benefits updates and deadlines. (Hint: Selerix Engage can help with this!)
- Partner with Compliance Experts: This is the most important one. Get help! Work with experienced ACA partners — like our dedicated ACA team at Selerix —to ensure you’re meeting all regulatory requirements, navigating complex regulations and minimizing risk.
Avoiding ACA Pitfalls in Trucking & Logistics
In the trucking industry, especially, ACA compliance can be particularly tricky due to complex scheduling and classification issues, as well as unique medical and family needs. If you’re not careful, you could find yourself facing steep fines for misclassifying drivers or failing to offer required coverage. That’s why we’ve put together an in-depth ebook: 7 Common ACA Compliance Pitfalls in the Trucking Industry and How to Avoid Them, specifically for the trucking industry, highlighting common pitfalls and strategies to avoid them. Download the free eBook to learn more about staying compliant and protecting your transportation business.
Simplify Compliance with the Right Tools and Strategies
Staying compliant with ACA and COBRA regulations doesn’t have to be a constant source of stress. By implementing these strategies, using the right tools, and partnering with trusted experts you can simplify the process, reduce risks, and focus on supporting your employees.
Looking for that expert advice? Let Selerix help you manage the complexity of ACA compliance — getting it right so you can focus on what you do best. Contact us today to schedule a free demo and see how our ACA solution can benefit your company.
