What is open enrollment? A small business guide to managing employee benefits enrollment

Open enrollment is the set period when eligible employees can enroll in workplace benefits or change their current selections. For small business employers, it’s an important chance to help employees understand their options, compare costs, and choose coverage that fits their needs.

The process can also support retention. In the QuickBooks Small Business Insights survey, 66% of U.S. small businesses said health care was the most effective benefit for retaining employees. A clear, well-planned enrollment process can help your team get more value from those benefits while reducing missed deadlines and administrative confusion.

This guide explains what open enrollment is, when it typically happens, what employees can change, and how employers can manage the process from start to finish.

What is open enrollment?

An open enrollment period is a scheduled window when eligible employees can sign up for workplace benefits or change their existing elections. Depending on what the employer offers, those employee benefits may include health insurance, dental and vision coverage, life insurance, disability insurance, and certain spending or savings accounts.

Job-based open enrollment is different from the federal Health Insurance Marketplace (or state-based Marketplaces) run under the Affordable Care Act (ACA). If your employees purchase coverage through HealthCare.gov or a state Marketplace, that program has its own enrollment window, which may differ from your company's internal schedule. Always verify current Marketplace dates directly at HealthCare.gov.

One more thing to communicate clearly to your team: if an employee takes no action during open enrollment, the outcome depends on your specific plan rules and insurance provider. Some plans may maintain existing elections, while others may require active re-enrollment. Check with your plan administrator or broker to understand what applies to your coverage.

When is open enrollment?

There’s no universal open enrollment date for every employer-sponsored plan. Many employers schedule enrollment in the fall before benefits take effect on January 1, but a company may use another schedule based on its plan year, insurer, or benefits administrator. Employer-sponsored open enrollment typically lasts two to four weeks, although the exact length varies by company and plan.

You should confirm these dates before communicating with employees:

• The first day employees can make elections
• The final deadline for submitting elections
• The date new coverage takes effect
• Deadlines for correcting incomplete information
• Deadlines for sending elections to the insurer or administrator

Marketplace enrollment follows a separate schedule. In most states, November 1 through January 15 is the yearly enrollment window for federal Marketplace coverage. Job-based plans may use different dates, and some states operate their own Marketplaces with slightly different timelines. Always confirm current dates directly with the Marketplace.

The bottom line: Confirm your plan’s enrollment window with your insurance broker or carrier, and share those dates with your employees well in advance.

What can employees do during open enrollment?

Open enrollment gives employees an opportunity to review and adjust their benefits. Depending on your plan offerings, eligible employees may be able to:

• Enroll in or decline eligible coverage
• Change employee health benefits or adjust coverage levels
• Add or remove eligible dependents, including a spouse, same-sex spouse, or child, and a domestic partner if the plan offers that coverage
• Verify dependent eligibility and submit any required documentation, such as a marriage certificate, birth certificate, or domestic partnership affidavit
• Review dental and vision coverage
• Review life and disability insurance
• Elect flexible spending account (FSA) or health savings account (HSA) contributions, where eligible and permitted by the plan
• Compare premiums, deductibles, copays, provider networks, and employer contributions
• Update beneficiaries and personal information

Make dependent eligibility rules, documentation requirements, and submission deadlines clear in your enrollment materials. Employees considering domestic partner coverage should confirm the plan’s requirements and any tax implications with the benefits administrator.

Need more information on benefits? Check out our employee benefits guide.

Open enrollment vs. special enrollment periods

A special enrollment period is a window outside the normal open enrollment schedule that lets someone make certain benefit changes. It’s triggered by a life change, not by the calendar.

The main difference is timing and eligibility. Open enrollment happens on a set schedule and is generally open to all eligible employees. A special enrollment period opens only after a qualifying life event, and only the affected person can use it.

Common qualifying life events include:

• Marriage or divorce
• Birth, adoption, or placement of a child
• Loss of other health coverage (for example, a spouse loses their job-based insurance)
• A dependent aging off a parent's plan
• A change in employment status

It's important to note that eligibility, required documentation, and deadlines for a special enrollment period vary depending on the plan and applicable federal or state rules. Employees generally have a limited window, usually around 30 to 60 days from the qualifying event, to request a change. Always confirm the specific requirements with your plan administrator or insurance carrier.

The table below summarizes the key differences between the two enrollment types:

How to run open enrollment (employer's guide)

Running a smooth open enrollment takes planning. Here's a step-by-step approach to help you stay organized and keep your employees informed.

Step 1: Review plans, costs, and deadlines

Start by confirming all the details with your insurance broker or carrier before you communicate anything to employees. Review:

• Which plans are available, and whether anything has changed from last year
• Employee eligibility criteria
• Employer contribution amounts
• Key deadlines for enrollment submissions
• Any plan changes that affect premiums, deductibles, networks, or covered services

Don't assume this year's plan is identical to last year's. Changes happen, and employees need accurate information to make good decisions.

Step 2: Create a clear enrollment timeline

Work backward from your plan's effective date to build a realistic schedule. A good timeline accounts for:

1. Finalizing plan details with your carrier or broker
2. Preparing employee-facing materials
3. Holding an informational session or sending a kickoff announcement
4. The active enrollment window (when employees submit elections)
5. A buffer period for corrections and follow-ups
6. Submission of completed elections to your carrier

Build in more time than you think you'll need. Employees usually have questions, and last-minute changes are common.

Step 3: Communicate changes early

Don't wait until the last week of open enrollment to share the details. Employees need time to review their options, compare plans, and ask questions.

When communicating, cover:

• What's changing from last year (if anything)
• Enrollment deadlines
• What employees need to do to complete their elections
• Where to go with questions

Use more than one channel when practical. Email is a start, but a team meeting, a printed summary, or a quick video walkthrough can reach employees who might otherwise miss a message in their inbox.

Step 4: Give employees decision-support resources

Help employees make informed decisions by giving them the tools to compare their options. Useful resources include:

• Plan summaries and comparison charts
• Provider directories for each health plan option
• Contact information for your broker or insurance carrier
• An opportunity to ask questions, whether through a group session or individually

A word of caution: avoid telling employees which plan they should choose. Individual needs vary widely based on health history, family size, finances, and personal preferences. Your role is to give them the information. The decision is theirs.

Step 5: Collect and review elections

Once the enrollment window opens, track who has submitted their elections and who hasn't. Follow up with employees who haven't completed the process. Don't assume silence means they're happy with the status quo.

Before submitting elections to your carrier, review the submissions for obvious errors: missing information, incorrect dependent details, or coverage levels that don't match what was requested. Catching these early is much easier than correcting them after the fact.

Step 6: Confirm enrollment and keep records

After elections are submitted, send employees confirmation of their enrollment. This gives them a chance to flag anything that doesn't look right before coverage takes effect.

Keep records of your enrollment process, employee elections, and any communications you sent. Benefits administration involves sensitive personal information, so ensure your recordkeeping practices meet applicable privacy and data security standards.

Most private-sector group health plans are subject to federal standards under the Employee Retirement Income Security Act (ERISA), though specific responsibilities depend on the plan and circumstances.

Consult your plan administrator and qualified legal, tax, or benefits professionals when determining your specific obligations.

How QuickBooks can help

Running open enrollment involves a lot of moving parts, from employee records to payroll to plan details. Connected HR and payroll tools can help by keeping employee information in one place, reducing duplicate data entry and manual tracking.

QuickBooks Workforce includes tools to help you manage employee data and keep your team's information organized, so when open enrollment comes around, you're not scrambling to pull records from multiple places.

For businesses that want to offer health coverage, QuickBooks Workforce connects with employee health benefits through Allstate Health Solutions, giving your employees access to affordable medical, dental, and vision plans while keeping payroll deductions automated.**

Want to spend less time on benefits paperwork this year? Explore how HR software from QuickBooks Workforce can support your open enrollment process.

***Health insurance information is provided by Intuit Insurance Services Inc., a licensed insurance broker, through a partnership with Allstate Health Solutions. Intuit Insurance Services Inc. is owned and operated by Intuit Inc. and is paid a fee by Allstate Health Solutions in connection with referred clients. Intuit is not an insurance carrier. Plans are sold separately and require acceptance of Allstate's Terms of Use and Privacy Policy.*