Who would have thought that more than 13 years after the passage of the Affordable Care Act (ACA), the law would still be causing benefits advisors and HR professionals so much heartburn and so many headaches trying to meet its employer mandates for data collection and reporting? Yet, here we are, with IRS scrutiny increasing, penalties for non-compliance becoming more common, and heftier fines having been rolled out this year. 

Several ACA issues are intertwined, making it even more challenging for benefits professionals and HR leaders to get a clear picture of what matters most to them and what they should prioritize to avoid missteps and ensure compliance. For example, the 2022 Inflation Reduction Act, which went into effect this year, provided an additional $80 billion in supplemental funding for the IRS over 10 years. Over half of that amount is earmarked for increased enforcement. The ACA was also extended to 2025, which means more workers will be participating in state and federal ACA health exchanges. Combined with the increased attention on enforcement, the IRS can be expected to issue more penalty notices going forward.

All of this can be daunting for HR leaders, their benefits consultants and their teams who may be struggling simply to learn and understand the wrinkles of the law and its changing regulations. However, you can avoid the most common pitfalls of ACA noncompliance if you understand the most common types of violations and then implement three strategies to prevent falling victim to them.