Open enrollment season is a critical time for small businesses to review and update their employee benefits offerings. But it’s also a compliance minefield. From distributing Summary of Benefits and Coverage (SBC) notices to updating ERISA documentation and COBRA procedures, there are several key steps employers must take to stay compliant. This checklist outlines the top seven actions to take during your open enrollment campaign.
1. Review Your Plan Documents for Accuracy and Updates
Before open enrollment begins, take time to review your health and retirement plan documents. These include plan summaries, eligibility rules, and contribution structures. If your business has made changes to benefits or vendors, those updates need to be reflected in your documentation. This ensures employees receive accurate information and helps you stay aligned with ERISA requirements.
📎 Employee Retirement Income Security Act (ERISA) | U.S. Department of Labor
2. Distribute the Summary of Benefits and Coverage (SBC)
The SBC is a standardized document that explains what each health plan covers and what costs employees can expect. Employers are required to provide this before open enrollment begins so employees can make informed decisions. The format and content are regulated by the Affordable Care Act (ACA), and failure to distribute it properly can result in penalties.
📎 Other Resources | CMS
3. Confirm COBRA Procedures Are in Place
If your business offers group health coverage and has 20 or more employees, you’re likely subject to COBRA. This federal law requires you to offer continued coverage to employees who lose their benefits due to job changes or other qualifying events. Make sure your COBRA notices are up to date and that you have a process in place for timely distribution.
📎 COBRA Continuation Coverage | U.S. Department of Labor
4. Update Notices for Wellness Programs and Medicare Part D
If your benefits include a wellness program or prescription drug coverage, you may need to distribute additional notices. For example, the Medicare Part D notice must be sent annually before October 15 to inform eligible employees whether your plan’s drug coverage is creditable. These notices are often overlooked but are essential for compliance.
5. Review ACA Affordability Standards for 2026
Each year, the IRS updates the affordability threshold that determines whether employer-sponsored health coverage meets the standards set by the Affordable Care Act (ACA). This percentage affects how much employees can be asked to contribute toward their health insurance premiums. For small businesses, staying ahead of these updates is key to avoiding penalties and ensuring your plan remains compliant. As you prepare for open enrollment in 2026, it’s a good time to revisit your contribution strategy and confirm it aligns with the latest affordability guidelines.
6. Prepare Required Employee Notices
Open enrollment is a great time to distribute required notices like the HIPAA Privacy Notice, CHIPRA Notice (if applicable), and Women’s Health and Cancer Rights Act Notice. These documents inform employees of their rights and protections under various federal laws. Including them in your open enrollment packet helps streamline compliance and communication.
7. Coordinate with Your Payroll and Benefits Vendors
Changes in benefits often affect payroll deductions, eligibility tracking, and reporting. Make sure your payroll provider and benefits vendors are aligned with your open enrollment timeline and plan updates. This coordination helps prevent errors and ensures smooth implementation once employees make their elections.
Navigating HR compliance during open enrollment can be overwhelming—especially for small businesses with limited internal resources. Duffy Kruspodin’s HR consulting team is here to help. Whether you need support reviewing your plan documents, preparing notices, or coordinating with vendors, we can guide you through every step. Reach out today to schedule a consultation and make this open enrollment season your smoothest yet.
