2026 Benefits Law Changes: Employer Action Checklist

The One Big Beautiful Bill Act (OBBBA), signed in July 2025, brought the most significant set of employee benefits changes in years. Several provisions took effect January 1, 2026. This checklist helps HR leaders and business owners confirm which changes apply to your organization, and what actions are still required before year-end.

Use this as a working document with your benefits broker, TPA, and payroll provider., -

HOW TO USE THIS CHECKLIST

For each item below: confirm the change applies to your situation, check whether you've completed the required action, and note a deadline or responsible party. Items marked Required carry compliance risk if ignored. Items marked Optional are elective decisions that require deliberate action to activate., -

SECTION 1: DEPENDENT CARE FSA

Change: The dependent care FSA limit increased from $5,000 to $7,500 per household (from $2,500 to $3,750 for married filing separately). This is the first change in nearly 40 years. Effective for plan years beginning January 1, 2026.

Applicability: Any employer sponsoring a Section 125 cafeteria plan with a dependent care FSA component.

Decision required: Employers are NOT automatically required to increase the limit. You must choose to adopt $7,500., -

Step 1.1, Decide whether to increase the limit

• Reviewed the current dependent care FSA limit in our plan documents
• Confirmed with TPA/broker whether our plan automatically adopted $7,500 or still sits at $5,000
• Discussed nondiscrimination testing risk with TPA or benefits counsel (see Step 1.2)
• Made a formal decision: adopt $7,500 / keep $5,000 / defer decision to next open enrollment

Note: If you decide to offer $7,500, act promptly, employees may be able to make a mid-year election change, but only if the plan document is amended first., -

Step 1.2, Run the nondiscrimination test before acting

The 55% Average Benefits Test (Section 129) requires that non-highly compensated employees (NHCEs) receive average FSA benefits equal to at least 55% of what highly compensated employees (HCEs) receive. Increasing the limit without considering this test can result in HCEs losing pre-tax treatment on excess contributions.

• Requested a preliminary nondiscrimination test from TPA based on anticipated participation at $7,500
• Identified the HCE vs. NHCE participation split in prior year's dependent care FSA enrollment
• If test failure risk is high: developed employee education strategy to boost NHCE participation before adopting the higher limit, -

Step 1.3, Amend the plan document (Required if adopting $7,500)

• Plan document amendment completed or initiated with TPA/benefits attorney
• Amendment deadline confirmed: must be in place by December 31, 2026
• Summary Plan Description (SPD) updated to reflect new limit
• Open enrollment materials and employee-facing documentation updated: -

Step 1.4, Communicate to employees

• Employees notified of the change and new limit
• Communicated whether a mid-year election change is available
• Provided clear guidance on how to update elections if applicable, -

SECTION 2: HEALTH SAVINGS ACCOUNTS (HSA)

Several HSA rule changes took effect January 1, 2026 under the OBBBA., -

Step 2.1, Direct Primary Care (DPC) and HSA compatibility

Change: DPC memberships are now explicitly HSA-compatible. Participation in a qualifying DPC arrangement no longer disqualifies employees from contributing to an HSA. DPC membership fees can be paid with HSA funds, subject to monthly caps ($150/month for individuals, $300/month for families).

Applicability: Employers offering or considering an HDHP/HSA plan + DPC membership combination.

• Confirmed with broker/TPA that our plan documents reflect updated DPC rules
• If offering or evaluating DPC: confirmed that pairing with HDHP/HSA is now compliant
• If employees are currently in DPC arrangements that were previously excluded: confirmed HSA eligibility is restored: -

Step 2.2, Telehealth safe harbor

Change: The OBBBA permanently reinstated the safe harbor allowing HDHPs to cover telehealth on a first-dollar basis without jeopardizing HSA eligibility.

• Confirmed our HDHP includes telehealth coverage
• Confirmed plan documents reflect permanent first-dollar telehealth safe harbor, -

Step 2.3, Bronze/Catastrophic marketplace plans now HSA-eligible

Change: Individuals enrolled in Bronze or Catastrophic plans through the ACA Marketplace are now eligible to contribute to an HSA.

Note: Primarily relevant for employers contributing to individual coverage HRAs (ICHRAs) or employees on marketplace plans.

• If offering ICHRA: notified employees that HSA eligibility may now apply to those on Bronze/Catastrophic plans
• Updated employee communications as appropriate, -

Step 2.4, 2026 HSA contribution limits

For reference and enrollment documentation:

• Individual coverage limit: $4,400 (up $100 from 2025)

• Family coverage limit: $8,750 (up $250 from 2025)

• Catch-up contribution (age 55+): $1,000 (unchanged)

• Updated HSA contribution limit references in enrollment materials and payroll system, -

SECTION 3: EMPLOYER CHILDCARE CREDIT

Change: The Section 45F employer childcare tax credit increased from 25% to 40% of eligible childcare expenses (50% for eligible small businesses), with a maximum credit of $500,000 annually. This replaces the previous $150,000 cap.

Applicability: Employers who subsidize childcare for employees, contract with a licensed childcare provider, or operate an on-site childcare facility.

• Reviewed current childcare benefit offerings with finance/tax team
• Confirmed whether employer qualifies as "eligible small business" under OBBBA definitions
• Assessed whether a childcare benefit or subsidy program makes sense in light of improved credit economics
• If already offering childcare benefits: confirmed updated credit calculation with CPA or tax advisor, -

SECTION 4: STUDENT LOAN REPAYMENT ASSISTANCE

Change: The exclusion from taxable income for employer-provided student loan payments is now permanent (previously set to expire in 2025). The current $5,250 per-employee annual limit will be indexed for inflation beginning in 2027.

Applicability: Any employer offering or considering employer-paid student loan repayment assistance.

• Confirmed current student loan assistance program is structured to qualify for tax exclusion
• If not currently offering: evaluated whether to add student loan repayment assistance as a 2026/2027 benefit
• Updated plan documents if program structure changed: -

SECTION 5: PAYROLL AND W-2 REPORTING

Change: The OBBBA introduced new payroll reporting requirements related to tip and overtime income. Employers must now separately report tax-free overtime "premium" pay and qualified tips on W-2 forms.

Applicability: Employers with tipped employees or overtime pay.

• Confirmed with payroll provider that systems are configured to separately track and report tip income and overtime premium pay
• Verified payroll provider is updated for 2026 W-2 reporting requirements
• Ensured payroll team is aware of new reporting obligations: -

SECTION 6: GENERAL PLAN ADMINISTRATION

• 2026 benefit plan reporting and disclosure calendar reviewed with TPA
• All required ERISA filings confirmed and scheduled (Form 5500, SAR distribution, etc.)
• ACA affordability threshold updated: 9.96% of household income for plan years beginning January 1, 2026
• Summary Annual Reports distributed within 9 months of plan year end (or 2 months after extended 5500 filing), -

QUICK REFERENCE: 2026 KEY NUMBERS

| Item | 2026 Limit | |, -|, -| | Dependent Care FSA (household) | $7,500 | | Dependent Care FSA (married filing separately) | $3,750 | | HSA, individual coverage | $4,400 | | HSA, family coverage | $8,750 | | HSA catch-up contribution (55+) | $1,000 | | 401(k) employee contribution limit | $24,500 | | 401(k) catch-up (age 50, 59, 64+) | $7,500 | | 401(k) catch-up (age 60, 63) | $11,250 | | Health FSA limit | $3,300 | | ACA affordability threshold | 9.96% of household income | | Employer childcare credit (standard) | 40% of eligible costs | | Employer childcare credit (small business) | 50% of eligible costs | | DPC monthly limit for HSA payment, individual | $150 | | DPC monthly limit for HSA payment, family | $300 |, -

NOTES / ACTION ITEMS

Use this space to document open items, responsible parties, and deadlines specific to your organization.

| Item | Owner | Deadline | Status | |, -|, -|, -|, -| | | | | | | | | | | | | | | | | | | | |, -

This checklist was prepared for general educational purposes and does not constitute legal or tax advice. Consult your benefits broker, TPA, or legal counsel for guidance specific to your plan design and situation.

Benefits Collective helps employers with 25 to 500 employees navigate benefits changes and build competitive plans. Schedule a consultation if you'd like a guided review of how these changes affect your specific benefits program.