Three ways HRMS automation can help with compliance

HR data is subject to a myriad of laws and acts by government bodies at every level, from local councils to federal agencies. A robust HRMS configured for compliance automation empowers HR teams to stay ahead of ever-evolving regulations. Here are three practical examples of how automating compliance within your HRMS can strengthen your company’s reporting and testing efforts.

1. Integrations reduce risk with automated compliance testing

Every employer must verify each hire’s identity and work authorization. Traditionally, this involves manually completing the I-9 form and reviewing documents for authenticity. 

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By integrating your HRMS with E-Verify, you can automate compliance testing: employee data flows directly from your system into the I-9 workflow, then interfaces with government databases for instant validation. This approach eliminates manual errors, ensures authenticity, and frees HR to focus on more strategic tasks.

2. Automated alerts for upcoming expirations

Many HR teams still run monthly reports to chase expiring work permits, licenses, or certifications. Compliance automation tools let you configure automated compliance reminders and escalation paths. For example, an employee approaching a visa renewal date receives an email prompt; if they don’t respond, the system escalates the alert to their manager or a compliance officer. This automated compliance process guarantees no critical dates slip through the cracks and keeps your workforce compliant at all times.

3. Streamlined compliance reporting automation

The Affordable Care Act (ACA) or Obamacare has created a number of new reporting requirements for employers of 50+ employees who now need to provide annual reports with monthly breakdowns of who was offered health coverage along with employer/employee costs, details about the plans and employee data. This reporting becomes easier when you store and maintain these data elements in your HRMS and can reuse a report template to automatically generate the data needed by the government’s IRS Form 1095-C and Form 1094-C reporting.