This resource provides guidance on key employer payroll and HR compliance requirements and considerations under the One Big Beautiful Bill Act (OBBBA). It focuses on new requirements for reporting qualified tips and overtime pay and for the administration of new Trump accounts, important changes regarding various employer-provided benefits, and the status of Employee Retention Credit claims and refunds. Suggestions are also provided on how to communicate some of these changes to employees without crossing the line of giving legal advice.
The following chart compares state vs federal tax treatment of common employer-provided fringe benefits, including group-term life insurance, moving expense reimbursements, educational assistance under IRC § 127, and retirement benefits under IRC § 401(k) plans and IRC § 125 Cafeteria plans.