Why Richmond Employers with 50+ Employees Need a Compliance Checkup
Running a company with 50 or more employees comes with plenty of moving parts: managing people, scaling operations, balancing budgets, and of course, navigating the ever-changing world of employee benefits. One area that often gets overlooked until it becomes a problem? Compliance.
For Richmond businesses in particular, staying compliant with federal and state benefit regulations isn’t just about avoiding fines (though those can add up quickly). It’s about building trust with your employees and ensuring the systems you rely on to recruit and retain talent are rock-solid.
In this post, we’ll break down why a compliance checkup is crucial for employers with 50+ employees, what key areas to review, and how to approach it without drowning in acronyms.
Why Compliance Matters More Once You Hit 50+ Employees
Many smaller businesses operate under the radar when it comes to benefits compliance. But the moment your headcount crosses the 50-employee threshold, the rules change:
Affordable Care Act (ACA): Employers with 50+ full-time equivalents are considered Applicable Large Employers (ALEs) and must offer health coverage that meets minimum standards.
Reporting Requirements: With size comes paperwork (1094/1095 forms, ERISA documentation) and more.
Employee Expectations: Your workforce expects professional-grade benefits administration. Compliance missteps can shake employee confidence and even drive turnover.
And if you’re above 100 employees? The scope expands again. More reporting, more filing requirements, and more exposure if something slips through the cracks.
Common Compliance Gaps We See
When we meet with Richmond employers, a surprising number admit they’re not totally sure whether they’re “buttoned up” on compliance. Here are a few areas where confusion often pops up:
Summary Plan Description (SPD): ERISA requires every benefit plan to have a Summary Plan Description. Since carrier booklets usually don’t meet all the requirements, most employers use a “wrap document” to make their plans compliant.
Section 125 Plans: If you allow employees to pay for premiums pre-tax, you need a Section 125 plan document in place. Many employers don’t realize this is required until an auditor or vendor flags it.
1094/1095 Reporting: Applicable Large Employers must file these ACA forms annually. Errors or missed filings can trigger penalties.
Form 5500: Larger employers (typically with 100+ participants in certain plans) need to file a 5500. Missing the deadline can mean costly fines.
Each of these on its own might not sound intimidating, but together they form the backbone of your compliance responsibilities.
What a Compliance “Checkup” Looks Like
A compliance checkup doesn’t need to be overwhelming. Think of it like a physical exam for your benefits program:
Inventory Your Plans: Gather a full list of medical, dental, vision, disability, and life insurance offerings.
Review Documentation: Confirm you have up-to-date Section 125 plans, summary plan descriptions, and required notices.
Check Reporting Deadlines: Note when 1094/1095 filings, 5500 forms, and other reports are due.
Evaluate Processes: Who handles filing? Is it internal HR, a benefit admin/payroll system, or a third-party vendor? Gaps often occur at the handoff stage.
Look Ahead: Compliance rules evolve. For example, ACA affordability thresholds shift each year. Build a process to review these changes proactively.
The goal isn’t just to avoid penalties, it’s to know with confidence that your house is in order.
Why This Matters in Richmond
Richmond’s business community is growing fast, especially in industries like healthcare, hospitality, finance, and professional services. This means compliance obligations are growing right alongside their workforce.
We’ve seen too many employers only realize something’s off when:
A carrier requests missing documentation.
An IRS letter arrives about a late filing.
An employee asks for a summary plan description you can’t locate.
The fix is simple: don’t wait until there’s a fire. Get ahead of it with a routine compliance checkup.
Final Thoughts
If your Richmond company has 50+ employees, now is the time to take a step back and make sure your compliance is solid. Even if you think you’re in good shape, a quick checkup can uncover blind spots before they become expensive or disruptive.
Compliance doesn’t have to be complicated, but it does have to be intentional. Make this year the one you build a process around it. Your employees (and your future self) will thank you.