HR/Compliance Challenges by Company Size: 55 to 100+ Employees

July 21, 2025

As your company grows to 55-100 employees, you’ll face more complex HR challenges, particularly around compliance with ACA (Affordable Care Act) and the need to offer affordable health coverage.

Key Challenges for 55-100 Employees:

  • ACA Compliance: Once you hit 50+ employees, you must provide affordable health coverage.


  • Formalizing Performance Reviews: As your team expands, you need to establish consistent performance reviews, compensation bands, and equity.


  • Culture & Engagement: HR becomes a strategic concern as you need to maintain culture while scaling.


  • Complex Leave Management: Managing FMLA (Family Medical Leave Act) and ADA (Americans with Disabilities Act) leave is more complicated as your team grows.

Likely HR Headaches:

  • DOL Wage & Hour Audits: Compliance with wage laws and proper classification is more critical than ever.


  • I-9 Audits: Incorrect employee classification or failure to meet documentation requirements could result in audits.


  • EEOC Claims & OFCCP Compliance: If you’re a federal contractor, you need to meet strict compliance standards.

How a PEO Helps:

  • ACA Reporting: A PEO handles all ACA filings (1094/1095) for you, ensuring compliance with the Affordable Care Act.


  • Benefits Nondiscrimination Testing: A PEO ensures your benefits meet federal standards and do not discriminate against high earners.


  • Leave Tracking: The PEO helps manage leave, ensuring compliance with FMLA and ADA requirements.


  • HR Coaching & Training: PEOs provide ongoing coaching and training to ensure your HR practices are aligned with legal requirements and best practices.

Pro Tip:

There are over 600 PEOs nationwide. Work with a PEO Broker (like us!) to get side-by-side comparisons and unbiased guidance—at no cost to your business.

Need help getting started?

📧 Email: Suzanna@PEOForTheCEO.com

📅 Book a free consultation: https://calendly.com/suzanna-yourpeoadvocate

Stay tuned for the next post in this series, where we’ll explore common HR audits and nightmares for businesses at every stage!