Staying up to date with tax reforms and employment legislation is part of running a smart and compliant business. With the recent signing of the One Big Beautiful Bill Act (OBBBA) into law, there are several important updates that business owners should be aware of. While most changes are expected to take effect in the 2025 tax year (for taxes filed in 2026), it’s a good idea to prepare now for what may lie ahead.
Here’s a quick overview of what this new law could mean for you and your team:
- New Employee Tax Reporting Rules
Employers may need to adjust how they track and report overtime pay and tips. The OBBBA includes revised reporting standards that could affect how wages are reported to the IRS. If your business relies heavily on tipped wages or offers regular overtime, these changes might have a noticeable impact.
-
- Potential Cash Flow Benefits for R&D
If your business invests in domestic research and development, the new law may allow you to take immediate deductions for those costs. This could improve your cash flow and free up capital for other important areas of your business.
-
- Expanded Tax Credits for Paid Family Leave
Businesses that provide paid family leave could now qualify for increased tax credits. This enhancement may not only benefit your employees but could also offer meaningful financial incentives for your business to support working families.
-
- More Changes on the Horizon
In addition to the major updates above, the OBBBA includes several other provisions that could affect employers and employees alike. These include potential changes to health savings accounts (HSAs), student loan assistance benefits, and more.
-
- How Employers Can Prepare
While it may take time for the full scope of the law to become clear, it’s important to begin reviewing your current payroll systems and employee benefits. Consider speaking with your payroll provider or legal counsel to make sure you’re on track for compliance.
Final Thoughts
Legislation like the OBBBA reminds us of how quickly the regulatory landscape can shift. Staying informed and proactive is the best way to protect your business and support your employees. If you use platforms like Gusto, Paychex, or ADP they may already be implementing updates to help you stay compliant.
Now is a great time to educate yourself on these changes and consider how your business might benefit from—or be affected by—them. Proactive planning could go a long way toward smoother operations and better financial health.
The information provided does not, and is not intended to, constitute legal advice; instead, all information is for general informational purposes only. This information may not constitute the most up-to-date information. Links provided are only for the convenience of the reader. A. Ferraris Law, PLLC, and its members do not endorse the contents of the third-party references.
Copyright©2025, A. Ferraris Law, PLLC. All Rights Reserved.
