Tips For 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?

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