Open enrollment is the busiest few weeks of the year for whoever handles benefits, and most of the problems show up in January when the first payroll deducts the wrong amount. This checklist covers what changes for 2027 and the steps that keep enrollment and payroll in sync.
This guide is general information, not legal or tax advice. Confirm the details with your broker and plan documents.
The 2027 Numbers to Update
| Item | 2026 | 2027 |
|---|---|---|
| HSA limit, self-only | $4,400 | $4,500 |
| HSA limit, family | $8,750 | $9,000 |
| HSA catch-up, age 55 and up | $1,000 | $1,000 |
| HDHP minimum deductible, self-only / family | $1,750 / $3,500 | |
| HDHP out-of-pocket maximum, self-only / family | $8,700 / $17,400 | |
| Health FSA salary reduction limit | $3,400 | Watch for the IRS announcement |
| ACA affordability percentage | 9.96% | 10.22% |
The IRS had not released the 2027 health FSA limit as of mid-October 2026. Many plans set their election limit to "the IRS maximum" so it updates automatically. Check your plan document before telling employees a number.
ACA: Affordability and Reporting
If you are an applicable large employer (50 or more full-time employees, including full-time equivalents, in the prior year), two things matter this season.
Affordability. For 2027 plan years, employee-only coverage on your lowest-cost plan is affordable if the employee's share is no more than 10.22% of household income, measured using one of the IRS safe harbors. The percentage went up from 9.96%, which gives you a little more room on contributions.
Forms 1095-C. Since the Paperwork Burden Reduction Act, you can skip automatically mailing 1095-C forms to full-time employees if you post a clear notice on your website by the furnishing deadline and keep it up through October 15. The notice has to include an email address, a mailing address and a phone number, and you must furnish a form within 30 days of a request. You still file with the IRS.
The Open Enrollment Checklist
Before enrollment opens
- Confirm renewal rates and plan changes with your broker
- Decide employer contributions and check ACA affordability
- Update plan summaries, contribution charts and the enrollment guide
- Confirm the enrollment window, and who to contact with questions
During enrollment
- Remind employees at the start, the middle and two days before close
- Collect dependent information and verify any new dependents
- Track waivers. Someone who does nothing may be defaulted into or out of coverage depending on your plan rules
After enrollment closes
- Send elections to every carrier and confirm they were received
- Update payroll deductions with the right effective date
- Compare the first January carrier bill to payroll deductions, line by line
- Send confirmation statements so employees can catch mistakes early
The Step Most Employers Skip: Monthly Reconciliation
Carrier bills and payroll deductions drift apart. An employee drops coverage mid-year but the deduction keeps running. A new hire's coverage starts but nobody adds the deduction. Reconciling deductions against carrier invoices every month catches these within weeks instead of at next year's renewal, when refunds and arrears are much harder to sort out.
Where King & Co. Helps
We run open enrollment, coordinate carriers, update payroll deductions in your existing system and reconcile deductions every month. Billing is hourly, so you pay for the busy season and very little the rest of the year.
Book a free 15-minute call before your enrollment window opens.
Josh runs HR, payroll and PBJ support for employers across New England and New York, from five-person offices to multi-building nursing home groups. He works in every major payroll system and answers the phone personally.
Book 15 minutes with Josh