Despite the characterizations of HR as a strategic partner, the findings suggest that faith in HR may be only skin deep. Most of the surveyed financial executives indicated some level of deeper concern over various benefits issues. These include HR’s long-term benefits cost management strategies (97 percent), ACA reporting fines (89 percent), audits for noncompliance with ACA reporting (88 percent), and other potential missteps that might result in executive liability claims (93 percent). (See Figure 8) The study further revealed skepticism by a significant proportion – albeit not a majority – of finance respondents over the repercussions of ACA compliance audits. For example, 32 percent expect their HR departments to go over budget as 34 percent of them believe their HR teams are not on top of the ACA reporting challenge. And over a third (35 percent) of the finance executives are expecting IRS audits of their ACA reporting and to pay considerable penalties for non-compliance. Figure 8. Finance Concerns About Human Resources How much do the following concern you when thinking about your company’s Human Resources department? (5=Extremely concerned, 4= Very concerned, 3= Somewhat concerned, 2= A little concerned, 1=Not at all concerned) CONCERNED AVERAGE RESPONSE ESCALATING COSTS OF PROVIDING BENEFITS 97% 4 HR MISSTEPS THAT MAY AFFECT EXECUTIVE LIABILITY 93% 3.4 HR MISSTEPS THAT MAY AFFECT CYBER 91% 3.4 LIABILITY FOR THE COMPANY AND EMPLOYEES AFFORDABLE CARE ACT (ACA) REPORTING FINES AND PENALTIES 89% 3.3 AFFORDABLE CARE ACT (ACA) CADILLAC TAX 88% 3.3 BEING APPLIED TO PLANS FOR ALL EXECUTIVES AUDITS TO BE CONDUCTED FOR NONCOMPLIANCE 88% 3.3 WITH AFFORDABLE CARE ACT (ACA) REPORTING Research Report | Employee Benefits Barometer: SMB Perspectives and Priorities in an Era of Disruption 11