H.R.1, the One Big Beautiful Bill Act – Impacts to Employee Benefits

As discussed in the recent Eye on Washington article on H.R. 1, The One Big Beautiful Bill Act (the Act) contains a number of changes to employee benefits. These changes include, for example, enhancement of the employer-provided childcare credit and the elimination of the bike commuter reimbursement program. In this article, we discuss other provisions of the Act impacting employee benefits.
 
ADP will closely monitor developments and provide updates as more details emerge.

• The increase to Dependent Care FSA (DCFSA) contribution limit is effective for plan years beginning on or after 1/1/2026. ADP TotalSource will implement the updated DCFSA limit for plans on 6/1/2026 when the new plan year begins.