Tim Pratte, CEO of Selerix.
If you thought last year’s compliance season was a challenge, buckle up. 2025 is already shaping up to be a regulatory rollercoaster, with HR teams in the front seat. Executive orders are emerging, ACA reporting requirements are shifting and IRS scrutiny is on the rise. And that’s just the stuff we know about.
For HR, it boils down to this: Reactive compliance is not an option. It’s time to take a proactive approach to get ahead of the curveballs. Rally your partners and your technology to be sure you’re ready.
So, what do we know about the 2025 filing season? What’s still up in the air? And what should HR teams be doing right now to get ahead of that curve?
Let’s break it down.
What We Know: The Compliance Realities For 2025
There are a few certainties we can count on for the 2025 filing season:
ACA reporting requirements have been simplified.
In a move to make our lives easier, recent legislation has streamlined ACA reporting obligations, including eliminating requirements around Forms 1095-B and C. These changes reduce the administrative burden, but don’t get complacent. Accurate and timely filing with the IRS remains mandatory.
IRS enforcement could change.
The IRS’s enforcement landscape is shifting due to recent legislative actions and executive orders—like funding cuts and staffing changes. While enforcement efforts may face constraints, the IRS is still vigilant, especially regarding ACA compliance and accurate employee classifications.
Executive actions are impacting health plan compliance and coverage.
The President has signed several executive orders and reversed multiple executive actions from the previous administration, mostly related to drug pricing transparency and pandemic-era healthcare measures. They focus primarily on reducing regulatory burdens but may also alter reporting and impact the structure of employer health plans.
Data privacy and security in benefits administration is gaining importance.
Even as health plan regulations shift, data privacy expectations are tightening—especially at the state level. California, Colorado and Virginia have enacted stricter data privacy laws affecting how employee data is stored and shared. More are considering GDPR-style regulations with tighter data security policies.
What We Don’t Know: The Big Unanswered Questions
We’re heading into a year where it seems like the only real certainty is uncertainty. While we have a decent handle on the immediate regulatory landscape, policy shifts could throw HR teams into scramble mode. And if you’re operating in multiple states, congratulations. You now get to navigate an increasingly complex web of state-specific mandates, too.
Here are some of the key questions:
What’s the future of the ACA?
For now, the ACA is still intact, with employer mandates and reporting requirements in place. Some lawmakers are floating proposals to overhaul affordability calculations, shift employer coverage incentives or modify essential health benefits. Employers should be prepared for adjustments but avoid knee-jerk reactions to speculation.
Will paid family and medical leave get federal support?
So far, no national program for paid family leave has made it into law. As a result, states have taken matters into their own hands, passing an increasingly complex web of paid family and medical leave laws. If a federal mandate does emerge, it could override or reshape existing state laws, forcing employers to rethink their leave policies and payroll systems overnight.
How will remote work affect tax and benefits compliance?
The remote work boom created a tax and compliance nightmare, and many states still haven’t figured it out. Employers with distributed workforces are caught in a maze of state tax laws, benefits obligations and payroll reporting discrepancies. Until uniform federal guidance emerges, multi-state employers will have to navigate this.
Could new federal data privacy laws impact HR?
Data privacy regulations are mostly happening at the state level, but momentum is building for federal action. If a nationwide data protection framework is passed, employers may have to adjust their benefits administration platforms and data-sharing policies to comply with new privacy standards.
What Should You Do? Practical Steps For HR Teams
Change is constant, but compliance isn’t optional, and hoping for the best isn’t a strategy. No one can hold up benefits waiting for the next regulatory memo. You have to put the right systems in place now so that when changes hit, you’re ready.
Here’s a roadmap for companies:
1. Get your ACA and tax filings locked in early.
• Don’t procrastinate. Filing deadlines aren’t moving, and penalties are rising.
• Ensure accurate reporting, especially with new IRS scrutiny on worker classifications.
• If you’re still tracking ACA data manually: upgrade.
2. Watch the regulatory landscape—but don’t panic.
• Ignore the daily noise—focus on confirmed changes.
• Follow trusted industry sources and engage with compliance networks.
• Build relationships with advisors who can interpret real-world impact.
3. Prioritize compliance flexibility in your HR tech stack.
• Choose a system that adapts to changing regulations without major overhauls.
• Ensure payroll, benefits and tax systems integrate seamlessly.
• Use automation where possible—manual compliance can be a lawsuit in waiting.
4. Train your team on compliance best practices.
• HR and payroll need to be in sync. Make sure they understand filing responsibilities.
• Employees need clarity, too. Make benefits easy to understand, not just available.
• Consider running internal audits to spot gaps before regulators do.
5. Build a contingency plan for legislative surprises.
• Identify your biggest compliance risks and develop backup strategies.
• Have a rapid-response plan for major regulatory changes.
• Establish a compliance task force to monitor and react quickly.
6. Rely on the experts.
• Work with specialists who can help you stay ahead without second-guessing every headline.
• If your partners aren’t proactive about compliance and security, it might be time to rethink that partnership.
Proactive Compliance As A Strategic Advantage
Even if your HR team is top-notch, remember compliance isn’t a solo sport. Employers that leverage technology, track policy changes with experts and build flexibility into their benefits strategy can turn compliance into a strategic advantage. Those who wait until the last minute could pay for it, one way or another.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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