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.

• 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.