Your 2026 benefits compliance checklist

Staying compliant with employee benefits regulations is one of the most critical and complex responsibilities HR and benefits teams face each year. With changing rules, tight reporting deadlines, and significant penalties for noncompliance, even a small oversight can create serious risk for your organization.

That’s why we’ve created this 2026 benefits compliance checklist: a guide to help you stay organized, plan ahead, and confidently manage your compliance responsibilities throughout the year.

Note: All dates below are based on a January 1 through December 31 plan year.

ACA compliance

Why it matters

Affordable Care Act (ACA) reporting is one of the most closely monitored compliance requirements. Missed deadlines or errors can trigger costly IRS penalties.

Key 2026 deadlines

• February 28 – Paper filing deadline for ACA 1095-C forms (for employers eligible to paper file: fewer than 10 returns).
  
• March 2 – Deadline to furnish Form 1095-C to employees or post a compliant notice of availability.
  
• March 31 – Deadline for electronic ACA filing with the IRS.
  

Flexible spending accounts (FSA)

Why it matters

FSAs are subject to the IRS “use-or-lose” rule unless your plan includes a grace period or carryover. Without proactive communication, employees risk losing unused funds, creating dissatisfaction and compliance risk.

Key 2026 deadlines

• March 15, 2027 – FSA grace period ends (for 2026 plan year).
  
• December 31, 2026 – FSA funds must be incurred by this date for 2026 plans.
  

Dependent eligibility verification

Why it matters

Covering ineligible dependents increases costs and creates compliance exposure. A dependent eligibility audit helps control risk, reduce stop-loss exposure, and ensure carrier compliance.

Recommended timing

• Q1–Q2 (no later than June 30) – Conduct dependent eligibility audit.
  

Non-discrimination testing (NDT)

Why it matters

Non-discrimination testing ensures benefit plans don’t favor highly compensated or key employees. Required for Section 125 plans, FSAs, HRAs, and self-insured medical plans.

Key deadlines

• By June 30 – Perform mid-year testing.
  
• December 31 – Complete end-of-year testing.
  

QSEHRA compliance

Why it matters

Qualified small employer HRAs offer powerful tax advantages, but strict notice requirements apply.

Key deadline

• October 3, 2026 – QSEHRA notice due for 2027 plan year (90 days before plan year begins).
  

COBRA administration

Why it matters

COBRA provides continued health coverage after qualifying events and carries strict notification requirements.

Key timeframes

• Within 90 days of eligibility – General Rights Notice must be sent.
  
• Within 14 days of qualifying event notice – Specific Rights Notice and election forms due.
  
• Within 60 days of notice – Participants must elect COBRA coverage.
  

Stay ahead of compliance in 2026

Compliance doesn’t have to be overwhelming — but it does require proactive planning, reliable processes, and the right technology support. With the right systems in place, HR teams can reduce risk, simplify administration, and create a more seamless benefits experience for employees. 

This content is for educational purposes only and is not legal or tax advice. Employers should consult their legal, tax, and investment advisors for guidance specific to their organization.