After months of debate and revisions, the One Big Beautiful Bill Act (OBBBA) was signed into law by President Donald Trump on July 4, 2025. While the bill introduces sweeping changes for individuals, it also brings significant implications for employers—especially in the areas of benefits, payroll, taxes, immigration compliance, and paid leave.

Are you wondering how these changes will affect your organization? Here’s what you need to know to start preparing for 2026.

Key Changes to Employee Benefits

Health Savings Accounts (HSAs)
Telehealth services can now be offered before the deductible is met for employees with high-deductible health plans—making a pandemic-era provision permanent.

Dependent Care FSAs
The annual pre-tax contribution limit increases from $5,000 to $7,500. The employer-provided childcare credit also rises significantly, with small businesses eligible for up to $600,000 in credits.

Fringe Benefits

• Moving expense reimbursements are now taxable.
• Student loan discharges due to death or disability remain tax-exempt.

Payroll and Tax Implications

Overtime Pay Deduction
Employers can deduct up to $12,500 in overtime pay, with a phase-out for high earners. This must be reported separately on Form W-2.

Service Tips
Employees may deduct up to $25,000 in qualifying tips, excluding mandatory service charges.

Independent Contractor Reporting
The Form 1099 threshold increases from $600 to $2,000, reducing administrative burden but requiring payroll system updates.

Other Notable Provisions

• Student Loan Repayment: Employer contributions up to $5,250 remain tax-free.
• Meal Deduction Eliminated, but bike commuting reimbursements stay deductible.
• Adoption Credit: Now includes a refundable portion up to $5,000.

Immigration Compliance

The OBBBA allocates funding for 10,000 new ICE agents and expands the 287(g) program, increasing the likelihood of I-9 audits. Employers should ensure all documentation is accurate and compliant.

Paid Family and Medical Leave

The employer credit for paid leave continues, with greater flexibility in how it’s calculated—either based on wages paid or insurance premiums. Employees with six months of tenure may now qualify.

Stay Ahead of the Curve

The OBBBA introduces complex changes that will reshape how employers manage HR and compliance. Staying informed and proactive is key.

HR Synergy is here to help. Our team of consultants keeps you up to date with legislative changes and provides the tools you need to adapt with confidence.

Remote work has unlocked new talent pools for employers, and it has also created new legal risks. Many employees fail to tell HR when they work from another state, which can lead to serious tax, wage, and compliance issues for employers. State laws apply where the employee works, not where the company is based.

You are responsible for compliance for every state in which you have employees:

• Considering wage laws like reporting time pay and contractor pay liability.
• New protections for pregnancy, menopause, and striking workers.
• Hiring rules around pay transparency and background checks.

What you can do:

• Confirm where remote employees are working (do not assume they will tell you).
• Review and tailor policies by location.
• Stay current on evolving state laws to avoid fines and legal exposure.

Remote work is not going anywhere, and neither are the local laws that govern it. Staying ahead means understanding not just how your people work, but where.

Need help navigating multi-state hiring? We’re here to guide you.

For businesses offering self-insured health plans or health reimbursement arrangements (HRAs), the Patient-Centered Outcomes Research (PCOR) fee is a recurring annual compliance requirement. But if you don’t have an HR professional helping with compliance obligations, it can be tough to track deadlines and submission requirements.

At HR Synergy, we understand that tax compliance isn’t your core business—and it shouldn’t take time away from the work that is. That’s why we’re here to simplify the PCOR filing process and help you avoid costly mistakes.

What Is the PCOR Fee?

PCOR fees apply to employers offering self-insured health plans and/or health reimbursement accounts, and the IRS requires annual filings using Form 720. The due date typically falls on July 31 of the year following the last day of the plan year. Unfortunately, confusion often arises when companies mistakenly believe they need to file excise taxes beyond PCOR fees.

Common PCOR Filing Mistakes

Many small and mid-sized businesses are unaware that they’re subject to the PCOR fee—especially when offering HRAs or level-funded plans. Others make the mistake of overfiling or misfiling, thinking they must complete the entire Form 720 or pay excise taxes that don’t apply to them.

• Some of the most common missteps we see include:
• Filing the wrong sections of Form 720
• Missing the PCOR deadline altogether
• Overestimating the number of covered lives
• Failing to maintain supporting documentation
• Confusing PCOR fees with other ACA reporting obligations

These errors can result in unnecessary IRS correspondence, penalties, and stress.

How HR Synergy Makes PCOR Filing Easy

At HR Synergy, we help businesses stay on top of PCOR (Patient-Centered Outcomes Research) fee compliance—so you don’t have to worry about unexpected IRS penalties.  We help you understand your responsibilities without drowning in paperwork. 

When you work with HR Synergy, our expert team will:

• Work with your insurance broker to determine Your PCOR Fee Obligations
• We review your health plan structure—including any HRAs or self-insured benefits—to determine if and how the PCOR fee applies.
• Review IRS Form 720 – We ensure accurate reporting of covered lives and the applicable fee rate.
• Ensure Proper Documentation – We help you keep the necessary records to back up your filings, reducing your risk if the IRS ever comes knocking.
• Avoid Over Filing or Unnecessary Fees – We’ll help you avoid common traps, like paying unrelated excise taxes or filling out more of Form 720 than required.

Need Help With PCOR? You’re Not Alone.

If you’re unsure whether the PCOR fee applies to your business—or simply want to avoid the hassle of figuring it out—HR Synergy is here to help. We partner with businesses to take the guesswork out of HR compliance, including healthcare filings like the PCOR fee.

Don’t let a missed deadline or IRS form catch you off guard.
Let HR Synergy simplify your compliance so you can get back to running your business.

Contact us today to schedule a quick consultation before the July 31 deadline.

Workplace Safety Manuals & Training
Know the Rules. Protect Your Team.

Employers must comply with federal OSHA regulations for workplace safety. While some states like Connecticut and Vermont have additional rules for public sector workers, private-sector employers throughout the region follow federal standards. NH does not have its own OSHA plan, but all private employers must follow federal OSHA rules. Public sector safety is guided by best practices encouraged at the state level.

Key Requirements:

• Provide a written safety manual tailored to your workplace.
• Conduct regular, job-specific training for all employees.
• Ensure clear procedures for hazard communication, emergency response, and equipment use.
• Stay compliant with industry-specific standards (construction, healthcare, manufacturing, etc.).

Stay compliant. Stay safe.

Despite the growing awareness around mental health in the workplace, a persistent gap remains between what employees experience and what leaders believe they are delivering. Recent research reveals a troubling mismatch: while many employers believe they’re supporting mental well-being, a significant portion of the workforce disagrees.

This disconnect has serious implications—not just for individual well-being, but for organizational performance and financial sustainability.

The Hidden Cost of Untreated Mental Health

Mental health is not a “nice-to-have” benefit—it’s a business imperative. According to the CDC, 1 in 5 U.S. adults is dealing with a mental health condition. The financial toll is steep: untreated mental health issues can cost organizations up to $60,000 annually, adding up to $105 billion nationwide each year (Center for Prevention and Health Services).

And yet, despite these staggering figures, many employees don’t know about or feel comfortable accessing the mental health benefits their employers offer. Nearly 70% of U.S. workers are unaware or only somewhat aware of the resources available to them. Even more concerning: half don’t feel comfortable using them.

Burnout Is Contagious

Burnout doesn’t just affect the individual—it spreads. About 45% of employees report feeling burned out. Those who are burned out are nearly three times more likely to be job hunting, and less likely to exceed expectations at work.

Burnout often stems from chronic stressors: overwhelming workloads, poor management, compensation issues, and lack of staffing. These challenges don’t just erode individual performance—they ripple out to the team. When one employee is depleted, coworkers often absorb the extra burden, leading to resentment, reduced morale, and a cycle that’s hard to break.

Shifting the Culture, Not Just the Policy

The solution isn’t just more benefits. It’s a culture change. We can control workload, leadership, and staffing.

That means leaders must go beyond statements and start designing work environments that actively support mental health. That might look like:

• Redistributing tasks to ease individual workloads
• Offering more flexible schedules and meaningful time off
• Making space for regular check-ins and open dialogue
• Resourcing teams adequately to prevent chronic overwork

It also means ensuring employees know how—and feel safe—to access support. Open enrollment shouldn’t be the only time mental health resources are mentioned. Messaging should be ongoing, clear, and culturally supported.

Walk the Talk: Leadership’s Role

Leaders are the tone-setters for workplace culture. There is a perception gap: 73% of employees say their employers claim to care about mental health, yet nearly half say those actions fall short.

Only 2 in 5 employees believe their senior leaders actually model good mental health practices.

To change that, leadership must do more than speak about mental health—they must live it. That could mean:

• Publicly taking time off to rest and reset
• Encouraging boundaries and discouraging “always-on” culture
• Normalizing mental health days without requiring oversharing
• Responding supportively when employees disclose mental health needs

When leaders act on feedback and follow through on promises, they earn trust. When they ignore feedback or dismiss concerns, they risk losing it—possibly for good.

Where HR Goes from Here

HR professionals are uniquely positioned to bridge the gap between leadership intention and employee experience. They must:

• Ensure mental health is part of ongoing conversations—not just a line on a benefits sheet
• Translate data into action by following up on surveys with real change
• Foster psychological safety so employees feel secure speaking up
• Equip managers with training to support mental wellness and recognize early signs of burnout

The reality is simple: mental health isn’t an “HR problem” or an “individual responsibility.” It’s a workplace culture issue—and a leadership opportunity.

Employees are not asking for perfection. They’re asking for acknowledgement, support, and consistency. If organizations want engaged, high-performing teams, they must prioritize mental health—not just in words, but in every decision that shapes how people work.

After all, the healthiest companies are the ones that care deeply about the health of their people.