On July 4, President Trump signed H.R. 1, nicknamed the “One Big Beautiful Bill Act,” into law. The massive reconciliation bill includes several provisions that may interest employers. These include:
- Creation of a new type of individual retirement account, called a Trump Account, that allows employers to contribute up to $2,500 per year without tax consequences to employees;
- Extension and expansion of the employer tax credit for specified paid family and medical leave benefits and for employer-provided child care;
- Making permanent a tax provision that excludes specified employer student loan and interest payments from employee income; and
- Establishment of new deductions that will allow employees to deduct, through 2028, up to $25,000 of tipped income and $12,500 of overtime income per year.
The bill also includes numerous immigration provisions, including significant increases to most immigration-related fees and significant resources for enforcing immigration laws.
Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here.