Navigating the New Normal: How Recent Laws Are Reshaping Benefits Compliance
By Tyler Zirpoli, Associate Consultant
For HR leaders, keeping up with employee benefits compliance can sometimes feel like a whirlwind. But understanding how the latest laws are shaping the benefits landscape isn't just about ticking boxes; it's about smart moves that give your organization more flexibility, save money, and help hold onto your best people.
Why Staying Current on New Laws is a Game Changer for Benefits
New laws directly influence how to set up, run, and talk about employee benefits. Missing these updates can lead to:
- Compliance Headaches: Nobody wants unexpected fines or penalties, and they can be hefty.
- Missed Opportunities: New rules often open up fresh ways to save money or offer better benefits, giving you a real edge in attracting talent.
- Employee Frustration: If benefits aren't clear or optimized, they can lead to confusion and dissatisfaction among your team.
The Latest Legislative Updates and What They Mean for You
Recent changes in the law are creating a "new normal" for employee benefits. Here are some of the biggest updates:
1. HSAs Just Got More Flexible: Expanding Eligibility
Here's a big one: Health Savings Accounts (HSAs) are now much more compatible with Direct Primary Care (DPC) arrangements. This used to be a tricky area, but now:
- DPC programs are officially not seen as separate health plans. This means your employees can sign up for DPC and still contribute to their HSA.
- Even better, HSA funds can now be used tax-free to cover DPC fees, up to $150/month for individuals or $300/month for families.
Your Takeaway: This is a fantastic opportunity to explore offering Direct Primary Care. It's a valuable, often cost-effective, way to give employees great access to primary care while keeping those HSA benefits intact.
2. Telehealth Coverage is Here to Stay: Boosting Access & Efficiency
Remember how High-Deductible Health Plans (HDHPs) could cover telehealth services before the deductible without messing with HSA eligibility? That's now a permanent thing.
Your Takeaway: Telehealth is officially a long-term player in benefits strategies. You can confidently encourage its use to boost access to care, potentially cut down on in-person visit costs, and offer a super convenient option for your team.
3. Dependent Care FSA Limits Are Up: A Big Win for Working Families
To help with those rising childcare costs, the annual cap for Dependent Care Flexible Spending Accounts (FSAs) has been increased to $7,500 for individuals and $3,750 for those married filing separately.
Your Takeaway: This is huge for employees juggling childcare expenses. It's also a powerful tool for attracting and keeping talent, especially working parents. Just make sure your FSA communications and payroll systems are updated for 2026.
4. Student Loan Repayment – Tax Benefit Extended: A Smart Retention Play
Good news for attracting younger talent: Employer contributions to employee student loan repayments will remain tax-free beyond 2025, and they're now even indexed for inflation.
Your Takeaway: If you're looking for a strong, long-term way to keep your younger workforce happy and engaged, this benefit just got even more attractive. Think about adding it or expanding your offerings.
5. New “Trump Account” for Children: A Potential Game Changer for Families
There's a new provision allowing employers to contribute up to $2,500/year to a tax-advantaged account for employees’ children.
Your Takeaway: While we're still waiting on the nitty-gritty IRS guidance, this could become a major differentiator if you're aiming to offer truly family-friendly benefits. Keep an eye out for more details as this develops.
Staying Ahead of the Curve
The "new normal" in benefits compliance isn't about being reactive; it's about being proactive. As an HR leader, you can:
- Review Your Plan Options: See how these new rules open doors to more affordable, HSA-friendly, or family-focused benefits.
- Talk About New Benefits: Make sure your employees know about and use any newly compliant or enhanced benefits.
- Update Your Systems: Adjust your internal processes, payroll, and all employee communications to reflect the latest regulations.
Staying informed and teaming up with benefits experts can really help you navigate these changes smoothly. It ensures your benefits program stays compliant, competitive, and a real asset for your organization.
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