As we welcome 2025, now is the perfect time for employers to revisit their employee benefits packages. This review is essential not only to stay competitive in the market but also to ensure compliance with evolving regulations. Employee benefits laws and regulations are continuously changing, and staying ahead of the curve can save your organization from costly penalties while keeping your employees satisfied and protected.
Here’s what you need to know about benefits compliance in 2025, and the steps you can take to ensure your plans meet the latest requirements.
Updates in Benefits Compliance for 2025
ACA Reporting Requirements
The Affordable Care Act (ACA) remains a cornerstone of employee benefits compliance. In 2025, expect stricter enforcement of ACA reporting rules for Applicable Large Employers (ALEs) — those with 50 or more employees. Employers need to ensure that they’re accurately tracking employee hours, classifying workers correctly, and filing IRS Forms 1094-C and 1095-C on time. If you have a level-funded health plan, check with your carrier to ensure they will assist with your ACA forms.
Mental Health Parity and Addiction Equity Act (MHPAEA)
Mental health benefits are increasingly under scrutiny. In 2025, employers must ensure that their health plans provide mental health and substance use disorder benefits at parity with medical/surgical benefits. Non-compliance could trigger audits and penalties, so it’s critical to review your mental health benefits for compliance.
Transparency in Coverage Rules
New federal regulations require health plans to provide greater transparency around costs. Employers offering group health plans must ensure their insurers or plan administrators comply with mandates to publicly disclose pricing data and provide cost-sharing tools for plan participants. This helps employees make more informed decisions about their healthcare.
Why Compliance Matters
Compliance is not just about avoiding penalties; it’s about building trust and stability within your organization. Employees rely on their benefits for security, and ensuring your offerings are legally compliant demonstrates your commitment to their well-being. Non-compliance can lead to:
- Hefty fines or legal action
- Damage to your company’s reputation
- Loss of employee trust and satisfaction
Steps to Stay Compliant
Conduct a Benefits Audit
Start the year by reviewing your current benefits offerings. Ensure they meet federal, state, and local requirements, and identify any gaps that need addressing. A comprehensive audit will help you spot areas for improvement.
Leverage Expert Guidance
Partner with benefits advisors or legal professionals who specialize in employee benefits compliance. Their expertise can help you navigate complex regulations and keep your plans up-to-date, reducing the risk of errors.
Train Your HR Team
Ongoing training for your HR staff is essential. Equip them with the knowledge and tools they need to manage benefits effectively. A well-informed team is crucial to ensuring compliance across the organization.
Communicate with Employees
Transparency with your employees is critical. Keep them informed about any changes to their benefits and how these updates may affect them. Proactive communication builds trust and minimizes confusion.
Monitor Legislative Changes
Stay informed about pending legislation and regulatory updates at both the federal and state levels. Subscribe to industry newsletters or consult with your benefits provider regularly to ensure you’re always in the know about changes that may impact your organization.
Looking Ahead
Employee benefits compliance can feel overwhelming, but staying proactive and informed will set your organization up for success in 2025 and beyond. By aligning your benefits packages with the latest rules and regulations, you’ll not only protect your business but also demonstrate your ongoing commitment to supporting your employees.
Need help navigating compliance requirements? Reach out to our team today. We’re here to help you build a benefits strategy that’s both compliant and competitive in the new year.