THE HR PULSE
HR PULSE | OCTOBER 2026
2027 Is Taking Shape:
What to Know Now
The first 2027 payroll and benefits numbers are out, health costs are climbing, and year-end reviews are around the corner. This issue covers what changed, what to do about it and a holiday pay question we hear every November.
HR QUICK WINS
Your October HR Checklist
- Confirm employee information. Ask employees to verify mailing addresses and review their W-4s before W-2 season.
- Mark the W-2 deadline. 2026 Forms W-2 are due to employees and the SSA by February 1, 2027.
- Announce holiday closures. Share closure dates and how pay and PTO will work before Thanksgiving.
- Schedule year-end reviews. Give managers dates and guidance before the holidays fill the calendar.
HR NEWS & UPDATES
The 2027 Numbers
Employers Need to Know
PAYROLLL – ANNOUNCED OCT. 14
Social Security wage base rises to $192,300. That is up from $184,500. Employers and employees each pay 6.2% up to the limit, so employer cost rises by up to $483.60 for each employee at or above it.
BENEFITS – IRS REV. PROC. 2026-24
HSA limits increase to $4,500 and $9,000. Self-only and family contribution limits rise from $4,400 and $8,750. The HDHP minimum deductible becomes $1,750 self-only and $3,500 family.
COMPLIANCE – IRS REV. PROC. 2026-26
ACA affordability threshold is 10.22% for 2027. Compare your lowest-cost self-only premium to this percentage of household income as renewal rates come in.
STILL TO COME
2027 retirement plan limits. The IRS has not yet announced 2027 401(k) contribution limits. We will share them once they are final.
Delta Clients
Our payroll team is updating the 2027 limits for you. No action is needed on your end.
BENEFITS & EMPLOYEE EXPERIENCE
Open Enrollment:
Planning Around Higher Costs
Without any changes, employers projected an 11% increase, and 59% plan cost-cutting adjustments such as higher deductibles. Whatever your organization decides, how the change is explained matters as much as the change itself:
- Show the dollar difference. Translate percentages into per-paycheck amounts for the plans most employees choose.
- Explain the reason early. Tell employees what changed and why before they see it on a paystub.
- Point to lower-cost options. If you offer an HSA-eligible plan, the higher 2027 HSA limits are worth mentioning.
Source: Marsh 2026 National Survey of Employer-Sponsored Health Plans, preliminary results from more than 1,800 U.S. employers, September 2026.
8.2%
The average increase employers expect in health benefit cost per employee for 2027, after planned changes. The largest jump since 2003.
ASK GOTCHA COVERED HR
Holiday Closures and
Salaried Employees
Q – We’re closing the office the day after Thanksgiving. Do we still have to pay our salaried employees for that day?
A – For exempt employees, generally yes. Under federal wage and hour rules, an exempt employee who works any part of the week must receive their full salary, and the employer can’t deduct for a day it chose to close.
What many employers can do is apply paid time off to the closed day, as long as the written policy allows it. Nonexempt employees are paid for hours worked unless your policy provides holiday pay.
Before you announce closures, make sure your handbook spells out how they work so employees aren’t surprised.
Have a question for a future issue? Send it our way, and we may answer it here.
LEADERSHIP & MANAGER DEVELOPMENT
Year-End Reviews:
Prepare Managers Now
Annual reviews often land in the busiest weeks of the year. When they are rushed, feedback turns general and next year’s goals get set without much thought. A little preparation in October changes that:
- Use specific examples. Ask managers to gather examples from the full year, not just recent weeks.
- Separate feedback from pay. Hold performance and compensation conversations on their own so each gets attention.
- Document consistently. Clear records protect the organization if a performance issue escalates later.
Gotcha Covered HR Powered by Delta offers training and coaching to help managers lead clear, productive review conversations.
PEOPLE & CULTURE
Disability Employment Awareness Month:
Celebrating Value and Talent
October is National Disability Employment Awareness Month, and this year’s theme from the U.S. Department of Labor is “Celebrating Value and Talent.” A practical place to start is onboarding, where every new hire forms a first impression of your workplace:
Check your onboarding materials. Make sure forms, handbooks and training work on mobile devices and with screen readers.
Ask before day one. Give new hires a simple way to tell you what they need to get started, such as equipment or a schedule adjustment.
Plan safety for everyone. Confirm emergency procedures account for employees who may need assistance during an evacuation.
Onboarding and Safety Support
Delta Administrative Services supports onboarding, HR technology and workplace safety, so new employees start with the information and training they need.
DELTA NEWS
Delta Named One of the 2026
Best Places to Work
Delta Administrative Services has been named one of the 2026 Best Places to Work by New Orleans CityBusiness. Thank you to our team, whose work made this recognition possible.
WE’RE HERE TO HELP
Start 2027
Prepared
Want a second set of eyes on your year-end plans? From payroll settings and benefits renewals to holiday policies and manager training, Delta Administrative Services with Gotcha Covered HR can help you identify the next steps for your organization.
Delta Administrative Services with Gotcha Covered HR
HR • Payroll • Benefits • Compliance • Workforce Support
This newsletter is provided for general informational purposes and should not be considered legal, tax, accounting or safety advice. Consult the appropriate professional regarding your organization’s specific circumstances.
