Big changes to employee benefits are coming—and HR teams should take note. A recently passed federal bill includes several key updates that impact paid leave, dependent care, and employee wellness programs. Here are a few highlights to keep on your radar:
- Paid Family & Medical Leave (PFML) Tax Credit: Permanently extended! Employers can now receive credit not only for paid leave wages but also for premiums paid on qualifying insurance policies.
- Dependent Care FSAs: Contribution limits will increase from $5,000 to $7,500 beginning January 1, 2026—the first permanent increase since 1986.
- Employer-Provided Childcare Credit: Increases from $150,000 to $500,000, with expanded credit eligibility for small businesses.
- HSAs & Telehealth: Expanded access to remote care services and direct primary care under HSA/high-deductible health plans.
- Student Loan Repayment Assistance: Employers can now permanently contribute up to $5,250 tax-free toward employee loans, with adjustments for inflation after 2026.
These updates present a major opportunity for HR and benefits leaders to enhance offerings and improve recruitment, retention, and employee satisfaction. Is your leave program ready for 2026? Let ConnectBridge help you stay compliant and competitive. To learn more, read the full article here: How the Republican tax bill will affect employee benefits