The HRTech Wire

2027 IRS Limits Are Out: Here’s What Payroll Should Handle First

The IRS has released 2027 inflation adjustments in Rev. Proc. 2026-35, covering almost 70 tax provisions. Health FSA employee contributions rise to $3,500 (up $100), with up to $700 carryover where plans allow, and HSA limits are $4,500 for self-only and $9,000 for family coverage. Commuter limits rise to $350 each for transit/vanpool and qualified parking, while educational assistance reaches $5,400, adoption assistance $18,250, and QSEHRA $6,700 self-only and $13,550 family. Payroll teams are advised to update settings before open enrollment closes; the IRS has not yet published 2027 withhol