Dayforce compliance — shields, checkmarks, and regulatory documents
Compliance Services

Stay compliant. Every cycle, every filing.

ACA reporting, tax compliance, payroll audits, and regulatory filings — handled by consultants who know Dayforce end-to-end.

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What We Cover

Five compliance pillars. One team.

Every engagement is scoped to your specific regulatory environment — multi-state, multi-jurisdiction, or single-state.

ACA Compliance

1094-C/1095-C generation, coverage measurement, affordability calculations, and IRS penalty exposure reviews.

  • 1094-C/1095-C preparation and e-filing
  • Measurement period setup and review
  • Affordability code validation
  • Penalty exposure analysis
  • State-level ACA equivalents (MV, NJ, CA)
  • Code 2/2A/2B accuracy

Tax Compliance

Federal, state, and local tax configuration across every jurisdiction your employees live in.

  • Federal tax setup (FIT, FICA, FUTA)
  • State income tax withholding configuration
  • Local/city tax jurisdictions
  • Multi-state employer setup
  • Tax deposit reconciliation and validation
  • Year-end W-2 preparation review

Payroll Compliance

Pay rules, garnishments, FLSA classifications, and overtime calculations — configured correctly from day one.

  • FLSA exemption classification review
  • Overtime rule configuration (state-specific)
  • Garnishment calculation and priority order
  • Pay frequency and pay period setup
  • Minimum wage and living wage compliance
  • Direct deposit and pay card compliance

Regulatory Reporting

EEO-1, VETS-4212, state labor law reporting, and federal contractor requirements — filed accurately and on time.

  • EEO-1 Component 1 & 2 filing
  • VETS-4212 (federal contractors)
  • Affirmative Action Plan support
  • State quarterly wage reporting
  • Child support withholding reporting
  • ERISA and COBRA notifications

Benefits Compliance

Benefits enrollment, carrier EDI feeds, COBRA administration, and ERISA compliance across your carrier ecosystem.

  • Carrier EDI 834 feed configuration
  • Benefits eligibility rules setup
  • COBRA notification and administration
  • ERISA required plan documents
  • MLR (Medical Loss Ratio) reporting support
  • HIPAA privacy and security compliance
Dayforce-Native Compliance

Compliance built into your configuration, not bolted on after.

Most compliance failures aren't intentional — they're the result of a Dayforce configuration that was set up once and never reviewed as regulations changed. We treat compliance as a living system, not a one-time configuration.

Our consultants audit your existing Dayforce configuration against current regulatory requirements, identify gaps, and build a remediation plan with fixed pricing. We also provide ongoing compliance monitoring as part of our managed services retainer.

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Common compliance gaps we find
ACA

Measurement period misaligned with plan year — triggers IRS penalty exposure

Tax

State withholding codes not updated after a legislative change — employees under/over withheld

Payroll

FLSA exemption classifications never reviewed post-Department of Labor rule changes

Reporting

EEO-1 Component 2 data not captured correctly in Dayforce — federal contractor exposure

Benefits

834 EDI feed mapping falls out of sync after a carrier platform upgrade

Dayforce Compliance Setup

Realistic timeline for mid-market (200–5,000 employees).

Most compliance engagements run 6–12 weeks. Complexity — multi-state tax jurisdictions, federal contractor reporting, ACA penalty remediation — extends that range. Here's the typical sequence:

Week 1–2

Compliance Audit & Gap Analysis

We review your current Dayforce configuration against all five compliance pillars — ACA, tax, payroll, regulatory reporting, and benefits. We document every gap, assign a risk level, and build a prioritized remediation work plan. Deliverable: gap report with fixed-price scopes.

Week 3–4

Configuration Remediation

We fix critical compliance gaps in Dayforce — ACA measurement period setup, state withholding codes, FLSA classification configuration, filing deadline tracking. We work in your Dayforce environment directly with admin access. All changes are tested before going live.

Week 5–6

Integration & Feed Validation

We validate carrier EDI 834 feeds, SFTP integrations to benefits carriers, and tax filing interfaces. Data flows must work end-to-end before filing season. We run test transmissions and validate output against carrier specs.

Week 7–8

Pre-Filing Validation & Testing

Before any major filing, we run validation checks inside Dayforce — ACA 1095-C data completeness, tax jurisdiction coverage, garnishments priority order. We catch errors before they become penalties or rejected filings.

Ongoing

Compliance Monitoring & Quarterly Reviews

After initial remediation, we move to quarterly reviews. Every 90 days we audit your configuration against current regulatory requirements, update for legislative changes, and provide a compliance status report. This is included in the managed services retainer.

Common compliance engagement extenders: Multi-state tax jurisdiction complexity, federal contractor EEO-1 Component 2 data gaps, ACA penalty exposure requiring code-by-code review, benefits carrier EDI feed mapping issues, and legislative changes mid-engagement. Build 2–3 weeks of buffer into your plan.
Compliance Go-Live Checklist

What needs to be done before your compliance period opens.

Use this checklist to hold your implementation team accountable. If something isn't done, it needs an owner, a reason, and a documented risk acceptance.

ACA Measurement Period Configuration

All active and ongoing measurement periods reviewed against current IRS instructions. Measurement groups aligned with plan year. Coverage offer codes (2/2A/2B) validated for all applicable employees.

Multi-State Tax Jurisdiction Audit

Every state with employees has a configured tax jurisdiction in Dayforce. State tax codes, rates, and deposit schedules verified. Local/city tax jurisdictions configured where applicable.

FLSA Classification Review Complete

All employee classifications (exempt/non-exempt) reviewed against current DOL guidance. Overtime rules configured for state-specific requirements. Worker classification audit completed.

Regulatory Filing Calendar Configured

EEO-1 Component 1 and Component 2 (if applicable) data capture confirmed. VETS-4212 filing pipeline verified. State quarterly wage reporting schedules configured with correct deadlines.

Benefits EDI 834 Feed Validated

All carrier EDI feeds tested and confirmed operational. Benefits eligibility rules aligned with plan documents. COBRA notification triggers configured in Dayforce.

Garnishment Priority Order Verified

All active garnishments reviewed and priority order validated in Dayforce. Calculated deductions verified against court order amounts. Tax levies and child support orders up to date.

Compliance Freeze Window Established

Configuration freeze period defined before year-end close. Change control process documented for post-freeze modifications. Emergency change escalation path confirmed.

Managed Services Retainer Activated

Quarterly review schedule confirmed with Harmon & Co. Filing deadline reminders enabled. Legislative change alert process documented. Contact and escalation information distributed to payroll team.

Post-Setup Compliance Support

What "compliance support" actually means at Harmon & Co.

Compliance isn't a one-time fix — it requires ongoing monitoring as regulations change and your employee population shifts. We structure post-setup support in three windows with clear response times.

First 30 Days

Active Monitoring

We monitor your Dayforce configuration daily during the first 30 days after compliance setup. We validate that filing data is flowing correctly and catch any configuration issues before they compound.

Days 31–90

Quarterly Review Cycle

We run our first full compliance review 90 days post-setup — checking for regulatory changes that have occurred, validating filing accuracy, and adjusting your configuration for any legislative updates.

Ongoing

Year-Round Compliance

Retainer clients receive quarterly configuration reviews, 60-day filing deadline alerts, pre-filing validation, and legislative change notifications. You never go into a filing season without knowing exactly where you stand.

Included in Every Compliance Engagement
Compliance status report post-setup
Filing deadline calendar (90-day view)
Legislative change log (if any)
Configuration change documentation
Quarterly review scheduling
Why Dayforce Compliance Expertise Matters

Compliance failures in Dayforce don't always show up in Dayforce.

The IRS penalty exposure is in the IRS letter. The garnishment violation is in the court order. The EEO-1 exposure is in the federal contractor report. Dayforce is the system — it's not the authority. Your Dayforce consultant needs to understand the regulatory framework, not just the configuration screens.

Most Dayforce consultants treat compliance as a checkbox — they configure the 1094-C form, hand it over, and move on. When the IRS penalty letter arrives, there's no ownership. You get a "we'll take a look" and a three-week wait.

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Regulatory depth, not just configuration

We understand the underlying regulations — IRC 4980H, IRS Instructions for Forms 1094-C/1095-C, FLSA classification criteria, EEOC filing requirements. Configuration follows from understanding, not reverse-engineering.

Fixed pricing, documented output

Every engagement ends with a compliance status report documenting what was configured, what was validated, and what needs ongoing monitoring. You never wonder where you stand.

Filing-season support included

We stay engaged through the annual filing season. If a 1095-C gets rejected, we fix it. If EEO-1 data needs correction, we handle it. You don’t navigate that alone.

Dayforce updates don’t break your compliance

Dayforce releases changes that can silently alter tax calculation logic, ACA coverage codes, or garnishments. We monitor release notes and proactively validate your configuration after any Dayforce update.

Compliance Services We Provide

From one-time audits to year-round monitoring.

Every engagement is scoped to your specific regulatory environment and employee population. We don't sell you a template — we build a compliance program that fits.

ACA Compliance Audit & Remediation

Full IRS penalty exposure analysis — 1094-C/1095-C data completeness, coverage measurement period alignment, affordability code validation, and IRC Section 4980H penalty calculation. Remediation plan included. For multi-state employers, we also review state-level ACA equivalents (Massachusetts, New Jersey, California).

From $1,200
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Multi-State Tax Configuration

Complete tax jurisdiction audit — federal tax setup (FIT, FICA, FUTA), state withholding codes for every state where employees work, and local/city tax jurisdictions. Multi-state employers commonly have gaps: states added after employees relocated, local taxes not configured, tax codes not updated after legislative changes.

From $900
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Payroll Compliance Review

FLSA exemption classification review against current DOL guidance, state-specific overtime rule configuration, garnishment calculation and priority order validation, and minimum/living wage compliance check across all jurisdictions. Especially important for companies with distributed workforces.

From $750
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Regulatory Reporting Setup & Filing

EEO-1 Component 1 and Component 2 (federal contractors) filing pipeline setup and annual filing support. VETS-4212 configuration and filing. State quarterly wage reporting setup and deadline management. ERISA and COBRA notification triggers configured in Dayforce.

From $1,500
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Benefits Compliance Configuration

Carrier EDI 834 feed configuration and validation, benefits eligibility rules setup, COBRA notification and administration triggers, ERISA required plan documents, and HIPAA privacy and security compliance review. Critical for companies with complex benefits ecosystems.

From $1,800
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Ongoing Compliance Monitoring Retainer

Quarterly compliance reviews, 60-day filing deadline alerts, pre-filing validation, and legislative change notifications. Retainer clients also get priority support during filing season and a dedicated compliance consultant who knows your configuration.

$750/mo — Quarterly Reviews
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Annual Compliance Calendar

When compliance deadlines hit, we’re already watching.

Jan
W-2 & 1099 Distribution
Confirm payroll year-end closes correctly
Feb
ACA 1095-C Transmission
IRS e-filing deadline for 1094-C/1095-C
Mar
EEO-1 Component 1 Filing
Federal contractor workplace data submission
Apr
Q1 Payroll Tax Review
Federal and state deposit reconciliation
Jun
VETS-4212 Filing
Federal contractor veteran employment reporting
Jul
Mid-Year Benefits Audit
Eligibility and coverage verification review
Aug
ACA Measurement Review
Variable-hour measurement period starts Aug 1
Oct
Open Enrollment Config
Benefits election workflow setup for Jan 1
Nov
Q4 Compliance Freeze Prep
Lock in configuration before year-end
Dec
Payroll Year-End Close
Final payroll run, tax deposit confirmation
Managed Services for Compliance

Ongoing compliance monitoring. No surprises at filing time.

Our managed services retainer includes quarterly compliance reviews, deadline tracking, and pre-filing validation. You get a team watching your configuration year-round — not just during crunch time.

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Quarterly Configuration Reviews

We audit your Dayforce configuration against current regulatory requirements every 90 days — before problems compound.

Filing Deadline Tracking

We maintain a compliance calendar and send reminders 60 days before each deadline, with a checklist of what needs to be ready.

Pre-Filing Validation

Before every major filing (ACA, EEO-1, VETS), we run validation checks in Dayforce to catch data errors before they become penalties.

Legislative Change Alerts

When tax law, ACA rules, or FLSA thresholds change, we proactively notify clients and provide a remediation scope.

FAQ

Compliance questions, answered.

We cover five areas: ACA reporting (1094-C/1095-C), tax compliance (federal, state, local withholding), payroll compliance (FLSA, garnishments, overtime), regulatory reporting (EEO-1, VETS-4212, quarterly wage reports), and benefits compliance (834 EDI feeds, COBRA, ERISA). Every engagement is scoped to your specific regulatory environment.

Dayforce tracks coverage for all benefits-eligible employees and generates 1094-C and 1095-C forms for IRS filing. Key configuration areas: coverage measurement periods, affordability calculations using Form 8960 safe harbors, employee status codes (2/2A/2B), and alee/offer coverage codes. We audit your configuration against current IRS instructions each year.

Both. We offer one-time compliance audits and remediation projects, as well as managed services retainers that include quarterly configuration reviews, deadline tracking, and pre-filing validation. The retainer structure ensures your configuration is continuously reviewed — not just during annual filing season.

Every state where you have employees needs a configured tax jurisdiction in Dayforce — withholding codes, rates, and deposit schedules. Multi-state employers commonly have gaps: states added after employees moved, local taxes not configured, or tax codes not updated after a legislative change. We audit for these gaps and provide a remediation scope with fixed pricing.

A full ACA penalty exposure review — analyzing your 1094-C/1095-C data, identifying coverage gaps, calculating potential IRC Section 4980H penalties, and providing a remediation plan — starts at $1,200. Actual penalty liability depends on full-time employee count, coverage offers, and affordability codes. We scope each review based on your employee population and data complexity.

Ready for a compliance review?

Tell us your current compliance situation. We'll give you a clear picture of what's at risk and what it costs to fix.

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