Compliance shouldn’t be a Checkbox but a Risk Strategy

Written By Lucinda Brophy

Compliance gaps rarely come from purposeful neglect; it’s often through transition; when roles change, new people step in, and institutional knowledge gets lost.

In many cases, employers assume their broker will ensure thing get done, when in reality, that level of support isn’t always included… or things simply get missed over time.

The result isn’t intentional oversight; it’s lack of visibility.


Where Things Break Down

Employee benefits sit across multiple regulations; ERISA, ACA, HIPAA, COBRA, Section 125, each with its own requirements and timelines.

Common gaps we see:

  • Missing or outdated SPDs

  • Form 5500 filings not completed or incorrect

  • Eligibility inconsistencies

  • COBRA notice issues

  • ACA reporting or affordability errors

Together, they create exposure, often times with costly penalties.


It Requires Ongoing Attention - Compliance doesn’t stand still.

Key thresholds and requirements shift year to year, from ACA affordability percentages to HSA contribution limits and other indexed regulations.

What was correct last year may not be correct today and without a process to track and adjust for these changes, even well-managed plans can fall out of compliance over time.


The Real Risk to Employers - Compliance issues rarely show up at convenient times.

They tend to surface during:

  • A DOL audit

  • An employee complaint

  • A business transition

At that point, the cost isn’t just penalties; it’s time, disruption, and added stress.


What Helps is a Structured Approach

Compliance works best when it’s built into the overall strategy. That means:

  • Clear and current documentation

  • Alignment between payroll, eligibility, and plan design

  • Visibility into key deadlines and filings

  • Ongoing review, not just at renewal

The goal isn’t just to check the box but to reduce risk and create consistency.

Compliance may not be the most visible part of your benefits strategy but it’s one of the most important.

When it’s handled well, it creates stability behind the scenes, but when it’s not, it tends to show up at the worst possible time.

If it’s been a while since your organization completed a compliance review, it may be worth a closer look. We’re always available to walk through Tandem’s compliance audit process, contact us at info@tandembenefitpartners.com

Lucinda Brophy
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