If you lead a growing business, you already know that managing people has become more complex. Payroll rules have changed and benefits costs have risen. New technology has reshaped how work gets done. Now add new federal legislation, expanding tax rules, and increasing data security risks. That mix makes 2026 a high-stakes year for employers.
The good news is that you do not have to navigate this alone. At LBMC Employment Partners, we are helping our clients navigate new HR trends for 2026 and answering a lot of questions about compliance and HR costs. Our clients want to do right by their employees and protect their business at the same time. As we start the new year, we wanted to highlight some recent changes.
The New Compliance Landscape Employers Must Navigate in 2026
The workplace is changing, and so are the rules that govern it. Here are several HR trends reshaping what compliance means for employers:
1. OBBB tax deductions and reporting changes
The One Big Beautiful Bill introduces new tax deductions for employees and expands credits for employers. These include credits for dependent care, paid family leave, workforce development, and businesses operating in rural or underserved areas. The legislation also creates new reporting standards and documentation requirements. Employers who do not understand what they qualify for may leave real money on the table or fail to meet their obligations.
2. Healthcare costs continue to shift
As we’ve navigated benefits conversations with employers and insurance providers, we’ve observed that about 1% of plan members now drive roughly 40% of medical spending. That puts pressure on employers to rethink benefit plan design, wellness strategies, and employee education. A plan that worked a few years ago may no longer make sense today.
3. Cybersecurity and data breach threats
Cybersecurity now belongs on every HR leader’s radar. Nearly half of U.S. businesses experienced a data breach in the last two years. Payroll systems, benefit platforms, and HR tools store sensitive data like Social Security numbers, bank details, and health information. On top of that, more employees use AI tools in their daily work without clear guidelines. That can create risk for a company if no policies or training exist.
All of this means compliance in 2026 is not just about filing forms. It touches benefits, technology, payroll, data, and employee trust.
The Most Common Compliance Blind Spots We See
The new provisions going into law and HR issues create potential compliance headaches for employers. These blind spots rarely come from neglect. They usually come from being busy.
Missed tax credits and deductions
Many businesses do not realize they qualify for incentives under the One Big Beautiful Bill. Credits for dependent care, paid leave, or workforce development could go unclaimed if no one is tracking eligibility or filing the right documentation.
Benefit plans that no longer fit reality
Rising medical costs and shifting employee requests require a fresh look at plan design. Without effective education and simple wellness programs, employees may not be using the benefits they already have. That drives higher claims and frustration.
Auto-enrollment errors or outdated handbooks and policies
New auto-enrollment and retirement rules can create risk when employers aren’t aware of them. At the same time, companies that grow quickly or evolve frequently can forget to make changes to their policies. An employee handbook that worked three years ago may now put the business at risk. Hybrid and remote work also changed how rules apply. Multi-state growth adds layers of legal complexity, and even small mistakes in these areas can lead to penalties.
Data and AI exposure
Many organizations lack clear policies on data security or AI usage. Employees may use new tools without understanding the risks. That opens the door to breaches or compliance failures. Clear policies, training, and monitoring can prevent small mistakes from becoming major problems.
Why Handling This Alone Is Riskier Than Ever
Many companies try to manage compliance internally until something breaks. That approach costs time, energy, and peace of mind. Leaders end up reacting instead of planning. They spend hours researching laws across states or fixing mistakes after the fact.
In 2026, that approach carries more risk. This is why now is the right time to revisit your HR strategy. Joining a PEO could offer you proactive support that costs far less than reactive cleanup.
When businesses move to a PEO model, we often focus on areas that are often overlooked or neglected. We help clients move from uncertainty to confidence while respecting how they operate.
How a PEO Changes the Compliance Equation
At LBMC Employment Partners, our PEO model gives employers a smarter way to manage risk as your business grows. When you partner with LBMC EP, you gain:
Built-in compliance infrastructure
Instead of building policies and processes from scratch, you step into a framework that already works. That includes employee handbooks aligned to federal and state law, multi-state policy support, payroll tax filing, benefits eligibility tracking, and reporting that stays aligned with new regulations as they take effect.
Dedicated HR and compliance expertise
Our team stays on top of changing labor laws and tax rules so you don’t have to. We help your clients understand what changing legislation means for their businesses and keep all policies, processes, and employee communications updated.
Access to tax credits and incentives
New legislation creates new opportunities, but many businesses miss them because they do not know what they qualify for or how to document it. We help identify credits tied to dependent care, paid leave, and workforce development, and then help our clients claim them.
Risk-reducing HR and payroll technology
Strong compliance today depends on secure, connected systems. Our technology includes protected platforms for payroll and employee data, built-in cybersecurity controls, and policies that govern how tools like AI are used in the workplace. That helps reduce risk while still supporting modern ways of working.
A compliance model that fits your culture
No two workforces operate the same way. We take time to understand how your organization runs, whether you have a hybrid team, remote employees, or a multi-state footprint. The goal is compliance that supports your culture and growth instead of creating friction.
Minimize Your HR Risk and Maximize Your Benefits in 2026
Compliance does not have to feel overwhelming. With the right partner, it can become a foundation for growth.
LBMC Employment Partners helps businesses navigate the One Big Beautiful Bill, rising benefit costs, cybersecurity risk, and multi-state compliance with confidence. We bring experts, technology, and a flexible approach to fit your organization.
If you want to understand how these changes affect your business and how to reduce risk in 2026, our team is here to help. Reach out to start the conversation.
