Filing season may be over, but ACA compliance risk doesn’t disappear once the forms are submitted.

In fact, for many brokers and employers, the real challenges are just beginning.

As workforce structures evolve, healthcare costs rise, and HR technology ecosystems become more fragmented, ACA compliance is becoming less of an annual administrative task and more of an ongoing business risk strategy. And whether brokers want to be in the middle of those conversations or not, clients increasingly expect guidance.

That doesn’t mean brokers need to become ACA coding experts overnight. But it does mean understanding where compliance risks tend to surface — and knowing when to bring in the right partner before a manageable issue turns into a penalty letter, operational fire drill, or client frustration.

During Selerix’s recent webinar, Partnering for Compliance: The Broker’s Role in ACA Success, Senior National Sales Director, Stacy Davidson, shared practical insights from more than a decade of helping brokers and employers navigate ACA complexity. Her message was clear:

“Clients trust their brokers to help connect the dots — even when ACA isn’t technically part of the broker’s day-to-day responsibility.”

And in 2026, those dots are multiplying quickly.

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ACA Compliance Has Changed — And Brokers Feel It

Back in the early days of ACA reporting, many brokers viewed compliance as a manageable extension of their advisory services. But over time, the landscape has shifted dramatically.

Today’s employers are navigating:

• Rising healthcare costs
• Lean HR teams
• Mergers and acquisitions
• Variable-hour workforces
• Mid-year technology changes
• Increasing IRS scrutiny
• State reporting requirements
• Evolving affordability pressures

At the same time, many brokers are intentionally stepping back from directly owning ACA reporting due to liability concerns — a completely understandable shift.

But avoiding ACA conversations altogether can create a different kind of risk.

As Stacy Davidson explained during the webinar:

“You don’t want to avoid talking about ACA, but if you’re hesitant to guide clients on the key aspects of being ACA compliant, you should look for a partner to help with that.”.

That distinction matters.

The brokers creating the strongest client relationships today aren’t necessarily the ones filing forms themselves. They’re the ones helping clients identify risks early, ask smarter questions, and connect with the right compliance resources before problems escalate.

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The Biggest ACA Risk? Assuming Someone Else Is Handling It

One of the most common compliance breakdowns happens in the handoff zones.

The employer assumes payroll is handling ACA reporting.
Payroll assumes HR owns the process.
HR assumes the broker has visibility.
The broker assumes the technology platform has it covered.

Then the IRS notice arrives.

ACA compliance gaps often happen not because someone ignored compliance entirely, but because responsibilities were never clearly defined.

That’s why proactive conversations matter — especially during periods of change like:

• Broker of record transitions
• Payroll or HRIS migrations
• Mergers and acquisitions
• Workforce restructuring
• Rapid growth beyond ALE thresholds

The earlier those conversations happen, the easier it becomes to avoid last-minute data cleanup and penalty exposure later.

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Five ACA Risk Areas Brokers Should Be Watching Closely

1. IRS Penalty Letters Are Becoming More Common — And More Manageable With the Right Response

Few things create more panic for employers than receiving an IRS Letter 226J or 5699 notice.

But according to Davidson, the first step is simple:
Respond. Quickly.

“The IRS gives employers a window to respond,” she explained during the webinar. “The key is responding quickly and strategically.”

Many employers mistakenly assume receiving a penalty letter automatically means they owe the full amount. In reality, documentation, reporting accuracy, and timely responses often play a major role in reducing or mitigating penalties.

The challenge is that most employers don’t know how to navigate that process internally — especially if they’re already stretched thin operationally.

That’s where brokers can add tremendous value:

• Helping clients recognize the seriousness of notices early
• Connecting them with compliance experts
• Reducing panic through education and process guidance
• Ensuring deadlines aren’t missed

At Selerix, ACA compliance support extends beyond filing itself, including penalty response assistance and historical filing support when needed.

Reach out to our team if you’ve received a letter – we can help!

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2. Mid-Year Technology Changes Create Hidden Compliance Gaps

Mid-year payroll or HR technology changes are becoming increasingly common — and increasingly risky from an ACA perspective.

What sounds straightforward operationally can quickly create reporting gaps, fragmented data, and filing confusion once ACA season arrives.

One of the biggest surprises employers encounter is this: many HR technology vendors will not handle ACA filings unless they managed the employer’s data for the full calendar year.

That often leaves employers scrambling to piece together reporting data across multiple systems — or searching for a standalone ACA solution after implementation is already complete.

Common challenges might include:

• ACA filings being declined after a mid-year system move
• Difficulty merging data from two systems into one filing process
• Loss of access to historical filing records or receipt IDs
• Missing or incomplete employee history
• Accuracy issues discovered after leaving a legacy platform

ACA data migrations can feel a little like moving houses during a thunderstorm — if records aren’t carefully preserved, important pieces can disappear quickly. That’s why preparation matters.

Brokers can help clients avoid unnecessary compliance headaches by encouraging them to:

• Start ACA transition planning early
• Pull historical filing records before leaving a legacy system
• Retain IRS receipt IDs and filing confirmations
• Validate employee eligibility and coding data before losing platform access
• Clarify who owns filing responsibilities during transition years

The earlier those conversations happen, the easier it becomes to prevent filing season from turning into a reconstruction project.

It is also important for brokers to understand the signs of an “ACA Light” solution. Not every payroll platform, HRIS, or HCM solution is built to handle the realities of ACA compliance — and that’s becoming a bigger issue for employers navigating complex reporting requirements.

We caution brokers against assuming every HR technology platform offers the same level of ACA functionality or compliance support.

Some systems may generate forms, but still fall short when employers need support for:

• Complex ACA eligibility tracking
• COBRA-related filing requirements
• State filing obligations
• Historical corrections
• IRS Letter 226J responses
• Prior-year compliance support

“Don’t assume every HR technology platform can meet every employer’s ACA compliance needs.”

That distinction matters most when brokers are involved in HR technology evaluations or platform transitions. A smooth implementation doesn’t always mean a smooth filing season later.

ACA compliance isn’t just about whether a platform can file forms — it’s about whether it can support employers when real-world compliance challenges show up months or even years later.

Brokers helping clients evaluate HR technology should encourage employers to ask tougher ACA-specific questions during the vetting process, including:

• What are the employer’s ACA pain points and can this software address those
• Is there visibility into compliance risks before IRS Filing
• Can the platform support state filings?
• What happens if the employer receives a 226J penalty letter?
• Are prior-year corrections supported?
• Can ACA reporting accommodate COBRA data from external systems?
• What records and receipt IDs remain accessible after leaving the platform?

Because in ACA compliance, the fine print behind the technology matters just as much as the features on the sales demo.

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3. Mergers & Acquisitions Are Bringing ACA Into Due Diligence Conversations

ACA compliance is increasingly becoming part of M&A due diligence — and for good reason.

With IRS lookback periods extending years beyond filing dates, acquiring a noncompliant company can introduce significant financial and operational risk.

Davidson noted that we have seen a rise in:

• Emergency historical filings before transactions close
• Compliance reviews during acquisitions
• Challenges tied to stock sales vs. asset sales
• Reporting complications when non-ALEs are acquired by ALEs

For brokers, this doesn’t mean becoming legal advisors.

It means recognizing that ACA compliance questions often surface during acquisitions — and helping clients identify resources before deadlines become urgent.

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4. Manual Processes Are Still Creating Avoidable Exposure

Despite how long ACA reporting has existed, many employers are still relying on manual coding processes, spreadsheets, or pieced-together workflows.

That creates risk.

Especially when:

• HR turnover occurs
• Reporting ownership changes hands
• Variable-hour employees are involved
• Affordability calculations fluctuate
• Employers are hovering near ALE status

Even employers using “ACA-capable” software may still be manually managing critical parts of the process without realizing where vulnerabilities exist.

And unfortunately, ACA reporting isn’t particularly forgiving when errors compound over time.

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5. The Brokers Winning Long-Term Loyalty Aren’t Avoiding ACA Conversations

The brokers creating the strongest retention opportunities today aren’t necessarily positioning themselves as compliance experts.

They’re positioning themselves as trusted problem-solvers.

That means:

• Asking smarter questions
• Recognizing risk triggers early
• Educating clients proactively
• Connecting employers with specialized ACA support
• Helping clients feel prepared instead of reactive

“Clients don’t expect brokers to know every IRS code. They do expect someone who can help them avoid preventable problems.”

That mindset shift is important.

ACA compliance conversations don’t have to create liability exposure for brokers. In many cases, they create stronger partnerships, deeper trust, and more strategic advisory opportunities.

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ACA Compliance Is No Longer a Once-a-Year Conversation

The employers who struggle most with ACA compliance are usually the ones trying to solve everything during filing season.

The employers with the most confidence are addressing risks year-round:

• Cleaning up data earlier
• Evaluating technology carefully
• Clarifying ownership responsibilities
• Preparing for workforce changes
• Responding proactively to notices
• Partnering with experienced compliance resources

That’s where brokers can create enormous value — not by carrying the entire compliance burden themselves, but by helping clients navigate it more strategically.

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Resources for Brokers Navigating ACA Compliance

To support brokers and employers throughout the year, Selerix offers a variety of ACA education and compliance resources, including:

• Compliance Audit and Defense Support for any employer
• Compliance checklists
• ALE determination guidance
• ACA code explanations
• Broker education materials
• Penalty response support
• ACA reporting solutions for any platform environment

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At the end of the day, ACA compliance isn’t getting simpler. But brokers don’t need to navigate it alone.

The firms leaning into these conversations thoughtfully — with the right partners, processes, and technology — are building stronger client relationships and helping employers move from compliance anxiety to compliance confidence.