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The IRS has announced an increase to the monthly pretax commuter benefits, effective January 1, 2026. This means employees can soon set aside a higher amount of pretax income to cover qualified transportation and parking expenses — a simple way to save money while reducing taxable income.

As we head into 2026, there are a few key changes on the horizon for employee benefits. The recently passed budget reconciliation bill — HR 1: “One Big Beautiful Bill Act”, signed on July 4, 2025 — includes several updates that HR professionals and small business owners should take note of before the new plan year begins.

Think HR is only for companies with 50+ employees? Think again. The reality is, many labor laws apply the moment you hire your very first employee. That means even the smallest teams are at risk without proper HR practices.