September 02, 2025

Understanding How the One Big Beautiful Bill Act Impacts Employers

10 minutes

The One Big Beautiful Act was enacted on July 4, 2025. This legislation includes several significant changes that impact small businesses and their employees, particularly in areas of payroll, employment tax, and employee benefits. In this episode, we break down the One Big Beautiful Bill Act and what it means for small businesses. From tax changes to new deductions, we cover the most important updates you need to know to stay compliant and maximize opportunities. Listen in as we cover:

[01:00] Overview of the One Big Beautiful Bill Act and its impact on small businesses

[01:45] Federal income tax changes and what they mean for owners

[05:10] New deductions for qualified overtime and tips, including retroactive rules

[05:50] SALT deduction cap increase and benefits for high-tax states

[06:55] Immediate expensing of R&D expenditures plus other business tax updates

[09:05] Practical steps for business owners to prepare and take advantage of the changes

This content is based on generally accepted HR practices, is advisory in nature, and does not constitute legal advice or other professional services. ADP does not warrant or guarantee the accuracy, reliability, and completeness of the content. Employers are encouraged to consult with legal counsel for advice regarding their organization's compliance with applicable laws. This content is current as of the published date.

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