Is your business prepared to close out 2025 in full compliance and confidence?
As the year winds down, many employers are busy with budgets, payroll, and holiday schedules. But innovative businesses know that year-end compliance is where the groundwork for next year’s success is really laid.
From Form 5500 filings to benefit plan updates and employee notifications, every document matters. Getting your compliance in order now means fewer headaches—and zero surprises—when 2026 begins.
1. Review Your Employee Benefit Plans
Take a close look at your existing benefits programs. Year-end is the perfect time to:
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Ensure your Summary Plan Descriptions (SPDs) are up to date and properly distributed.
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Review eligibility changes for employees who became eligible for coverage during the year.
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Confirm that all required notices (HIPAA, WHCRA, CHIPRA, COBRA, and ACA Marketplace notices) have been issued.
Missing or outdated documents can trigger DOL audits and costly penalties. Staying organized protects your business.
2. Prepare for Form 5500 Filing Season
Even though Form 5500 deadlines may feel far away, Q4 is the best time to start preparing.
Make sure your plan data, participant counts, and benefit details are accurate and ready for next year’s submission.
If you filed an extension this year, verify that your filings are complete and compliant before closing out the calendar year.
👉 Pro tip: Early prep saves you from the Q2 filing rush and keeps your business audit-ready.
3. Verify Health Coverage and ACA Compliance
If you offer group health coverage, ensure that:
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You’ve correctly identified full-time employees under ACA rules.
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1094/1095 forms are in process or scheduled for submission early in 2026.
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Any new hires transitioning from part-time to full-time have been notified of coverage eligibility.
ACA penalties for inaccurate or late reporting can be substantial—this is one area where timing matters most.
4. Check Paid Leave and Time-Off Balances
Whether you offer sick leave, personal days, or vacation accrual, confirm that:
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Policies are current and compliant with state or local laws.
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Balances roll over or reset correctly at year’s end.
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Deferred compensation or bonus programs are appropriately documented.
Year-end is your opportunity to correct inconsistencies before they become compliance liabilities.
5. Organize and Secure Compliance Documentation
Auditors love organized employers. Before you log off for the holidays:
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Store all benefits, ERISA, and ACA documentation in a secure, accessible location.
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Keep signed employee acknowledgments and annual disclosures on file.
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Maintain a compliance calendar for 2026 that includes all major filing and notification deadlines.
Consistency builds confidence—and protects your business if the DOL ever comes calling.
Let BC2 Handle the Heavy Lifting
At Benefits Compliance Consultants (BC2), we specialize in simplifying the complex world of year-end compliance.
Our team ensures your Form 5500 filings, SPDs, ACA reporting, and benefits documentation are accurate, complete, and compliant—so you can focus on running your business.
Whether you’re wrapping up the year or preparing for the next one, BC2 keeps your compliance stress-free and audit-ready.
Discover how BC2 helps businesses prepare for year-end with confidence.
