Enhancing Compliance and Reducing Risk: Expanding Benefits Makes Business Sense
Benefits decisions extend beyond recruitment and retention concerns. They serve as essential components of compliance and risk management strategies.
The Affordable Care Act (ACA) establishes specific requirements, and failure to meet these standards can result in significant penalties.
As an employee benefits broker, you can assist your clients in addressing these challenges by creating a benefits strategy that includes part-time, variable-hour, and seasonal employees. This approach is both strategic and necessary.
Strengthening ACA Compliance
Avoid Costly Penalties
The ACA requires that Applicable Large Employers (ALEs) offer Minimum Essential Coverage (MEC) to at least 95% of full-time employees and their dependents. By extending benefits beyond this group, employers can minimize compliance risks.
Reduce Worker Misclassification Issues
Providing benefits to part-time and variable-hour employees shows a proactive compliance approach, helping prevent potential legal disputes.
Stay Ahead of Regulatory Changes
Laws and enforcement priorities evolve. A comprehensive benefits strategy helps employers remain prepared for future regulatory shifts.
Proactively Managing Risk
Minimize Legal Exposure
Addressing potential inequities in benefits eligibility helps protect employers from lawsuits or claims of unfair treatment.
Protect Reputation
Employers known for treating all employees fairly strengthen their brand and workplace culture, resulting in lower turnover.
Create Business Stability
Expanding benefits helps organizations build a more resilient workforce while reducing potential compliance issues.
The Broker's Role: A Trusted Compliance Partner
Brokers who guide clients through ACA compliance and risk mitigation establish themselves as essential advisors. By recommending cost-effective solutions like MEC plans, you help clients meet regulatory obligations while improving workforce stability.
How are you advising clients on compliance and risk mitigation? Share your insights with us.
Talk to an Evolved Expert Today
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