How Trump’s “Big Beautiful Bill” Impacts Your Business and Payroll
The new OBBA (One Big Beautiful Bill Act) is reshaping how payroll, employee benefits, and HR compliance are being handled in the U.S.A. Spanning over new legislation, benefit rules, and overtime deductions, the bill is forcing small businesses to change how they handle taxes, compensation, and even reporting.
The bill presents both an opportunity and an added layer of responsibility for Florida business owners. Understanding what the bill entails and its contents is crucial for business owners.
What Does the Big Beautiful Bill State?
Signed on 4th June, 2025, the bill focuses on simplifying taxes and giving relief to workers by increasing the take-home income.
It can be seen as an extension of the 2017 tax cuts. Moreover, it adds new credits and deductions that directly affect the overall payroll. The key goals of the bill are:
- To introduce new tax deductions for tips and overtime income.
- Simplify payroll tax compliance
- Make contractor reporting streamlined
- Expand the family leave benefits
- Expand dependent care
Major Changes Under the OBBA Bill
The major changes under the bill, along with how it impacts the businesses, are highlighted below.
1. Tip Deductions
People working in industries that rely on tips as a source of income can deduct a maximum of $25,000 in tips. This includes the food service and hospitality industry.
2. Overtime Deductions
Joint filers can deduct $25,000, and single filers can deduct $12,500 of qualified overtime pay from 2025 to 2028.
Remember: Overtime pay should be tracked separately because tax tables don’t show the new deductions.
3. Moving Expense Deduction Eradicated
The reimbursements that you get for moving expenses now come under fully taxable wages. The only exception are military personnel.
Now, businesses have to categorize the moving expense reimbursements as taxable income.
4. Increased Limit of Dependent Care Flexible Spending Account (FSA)
The FSA limit will increase from $5,000 to $7,500 in 2026. Employers will have to integrate contribution tracking and update documents.
5. Permanent paid Medical Leave and Paid Family Credit
The tax credit is permanent for employers that provide paid family and medical leave.
Remember: Businesses can now claim tax credits on premiums or wages that are paid for qualifying leaves.
Therefore, this makes for an excellent opportunity for small Tampa business owners to save taxes and offer benefits.
6. Trump Accounts for Kids
Starting in 2026, employees can help set up a tax-free savings account for the children of employees who are under 18.
7. Increase Contract Reporting Threshold.
The threshold for issuing the 1099-NEC Form to contractors will increase to $2,000. Businesses will have to issue a few forms, but payment tracking will need to be accurate and precise.
What does the OBBA Bill Mean for Tampa and Florida Employees
Undoubtedly, the Florida economy consists of small businesses. From tech startups to retail shops to restaurants, the business is a mix of hybrid workers, hourly staff, and tipped workers. Moreover, the tourist element also attracts seasonal workers. All of these are highly affected by the bill. Major impacts are listed below:
- Increased risk for reporting errors if a manual payroll system is used.
- Detailed tracking for overtime and tip pays.
- Frequent system updates to integrate the new benefit structures.
- An added layer of communication between the employer and employees.
For Tampa Businesses, adapting early to these changes will help build trust and eliminate compliance issues.
How Can Onyx Payroll Solution Help?
Onyx Solutions specializes in catering to Florida small businesses, along with other clients, to navigate HR, payroll, and compliance changes. To help adapt your business to the Big Beautiful Bill, we can help in the following ways.
- Accurate benefit and Tax Tracking: Onyx Solutions provides systems that differentiate between benefit contributions, qualified tips, and qualified overtime. These differences are crucial for smooth reporting.
- Automatic Compliance Updates: No need to refer back to us again and again for updates. All the payroll regulations are monitored and automatically updated in the system.
- Integrated HR and Payroll Platform: We provide the perfect combination – an integrated HR management and payroll service system. Thus, providing efficiency and accuracy.
- Local, Specialized Support: As specialized Tampa Payroll Providers, Onyx Solutions understands the dynamic and unique business landscape of Florida. Therefore, providing proper support when and where needed.
Conclusion
The Big Beautiful Bill provides much-needed tax relief for the employees. On the contrary, the employer faces new complexities in an already complex system. However, with expert guidance, accurate tacking, and timely updates, you can convert this challenge into an opportunity to increase employee satisfaction and improve compliance.
Are you ready to streamline your payroll?
If yes, contact us today at Get Onyx Solutions to ensure your business stays one step ahead all!
