No matter where you stand politically, the recently signed One Big Beautiful Bill Act is poised to reshape the landscape for businesses across the U.S. From tax changes to workforce compliance, the bill introduces a wide array of updates—and many of them present strategic opportunities for employers.
If you’re a business owner, HR leader, or executive decision-maker, this is the moment to understand the impact and plan your next move.
Staying Focused on What Matters
Politics aside, this legislation is now law—and as business leaders, our focus must be on understanding the implications and maximizing the potential benefits for our people and operations.
Here’s a neutral, practical look at what the bill means for employers:
1. Continued Tax Relief for Pass-Throughs and Capital Investment
The bill permanently extends the 20% Qualified Business Income (QBI) deduction for pass-through entities (LLCs, S-corps, sole proprietors), offering long-term tax planning stability for many privately held firms.
In addition, the return of 100% bonus depreciation through 2028 allows businesses to immediately write off capital purchases, improving cash flow and encouraging reinvestment.
Tax on Overtime Pay in 2025: What’s Happening? | Kiplinger
2. Trump Accounts: A New Option for Employer-Sponsored Family Support
The law introduces Trump Accounts—tax-advantaged savings vehicles seeded by the federal government for children born between 2025 and 2028. Families can contribute up to $5,000 annually, and employers can contribute up to $2,500 per year, per employee or their child, tax-deductible and tax-free.
This provides employers with a low-cost, high-value tool to:
- Support working parents.
- Enhance your benefits package.
- Strengthen employee retention and recruitment.
Trump Accounts Get IRA Makeover in Senate Bill. Here’s What to Know. – Barron’s
3. Mandatory E-Verify is not Included — Yet
There has been significant confusion surrounding the idea that H.R. 1 — widely referred to as the “One Big Beautiful Bill” — includes a nationwide mandate for all employers to use E-Verify. Despite widespread reporting and speculation, the final version of the bill does not contain any such requirement.
That said, there is a growing perception — and practical trend — that employers who voluntarily adopt E-Verify may face less scrutiny and fewer compliance challenges in the future. Regulatory attention is increasing and using E-Verify proactively can serve as a strong indicator of good faith compliance.
If you’re already using E-Verify, you’re ahead of the curve. If not, now is a smart time to prepare:
- Update hiring and onboarding workflows
- Ensure your HRIS or ATS software is compatible with E-Verify
- Train staff and establish documentation protocols
Even without a federal mandate, failure to modernize your employment verification process may expose your business to delays or liability — especially in industries that rely on high-volume or seasonal labor.
4. Expanded Tax Credits to Support Workforce Development
Several employer-friendly tax credits have been extended or enhanced, including:
- Paid Family and Medical Leave (PFML) Credit: Up to 25% of wages paid during leave, helping employers subsidize important time-off benefits (IRS).
- Employer Child Care Credit: Credit increased from 25% to 40% of qualified child care costs, encouraging businesses to offer on-site or partnered care services.
- Student Loan Repayment Benefit: Up to $5,250/year in tax-free contributions to employee loans is now permanent and indexed for inflation.
These tools help you offer competitive benefits without significantly increasing costs.
5. New Deduction for Overtime and Tip Earnings: A Recruiting Boost
From 2025–2028, employees can deduct up to $12,500 ($25,000 for joint filers) of their overtime and tip income from federal taxable income (Kiplinger).
For employers, this presents a strategic advantage:
- Highlight this benefit in your recruitment messaging.
- Appeal to candidates in hourly roles—especially in manufacturing, logistics, and hospitality—by showing how they’ll “keep more of what they earn.”
This deduction doesn’t increase your payroll burden, but it may improve employee satisfaction and candidate conversion.
Tax on Overtime Pay in 2025: What’s Happening? | Kiplinger
6. Indirect Risks to Watch: Social Program Cuts
Although not directly targeting employers, the bill includes major reductions to Medicaid and SNAP (food assistance), which could affect your workforce:
- More uninsured employees may shift reliance to employer-sponsored plans.
- Higher absenteeism and turnover could follow if employees face instability at home.
- Increased pressure on HR to connect employees with outside resources.
Employers may want to explore:
- Low-cost telehealth and EAP options.
- Financial wellness and stability programs.
- Stronger community partnerships for wraparound support.
Action Steps for Employers
Regardless of your opinion of the bill, here’s how to turn the policy into progress:
- Review your tax credit eligibility and incorporate them into next year’s financial plan.
- Audit your hiring and onboarding processes to prepare for E-Verify.
- Evaluate Trump Account contributions as a family-friendly benefit.
- Update recruitment messaging to highlight new tax deductions for workers.
- Assess internal HR capacity to manage workforce disruptions as federal support programs change.
Final Thought: Focus on What You Can Control
The One Big Beautiful Bill will be debated for years. But the most effective business leaders aren’t debating—they’re adapting.
By taking a proactive, politically neutral approach, you can:
- Stay compliant.
- Improve recruiting and retention.
- Offer meaningful, tax-efficient benefits.
- Strengthen your competitive edge in a tightening labor market.
Let’s keep our focus where it matters: building resilient, forward-thinking workplaces—no matter what’s happening in Washington.