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The regulatory environment is changing faster than ever, and 2026 is expected to bring a wave of updates that will directly impact how small businesses hire, manage, pay, and retain employees. For companies without an internal HR team, keeping up can be overwhelming—and costly if something is missed.

December is one of the most important months for HR. And if you don’t wrap up key tasks now, the repercussions can hit hard in January—when you’re trying to start strong, hire strategically, and grow.

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.