What the One Big Beautiful Bill Act means for employers

Shari Simpson for Paylocity

What the One Big Beautiful Bill Act means for employers

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act , a comprehensive tax and policy reform law that has dramatic implications for how U.S. employers handle payroll, benefits, compliance, and employee communications.

The law’s provisions, which range from permanent tax cuts to expanded deductions and new workforce benefits, are forcing HR, payroll, and finance leaders to rethink their operations.

In a recent episode of the podcast HR Mixtape , Kurt Shoemaker, director of compliance and government relations at HR and payroll software company Paylocity , outlined key takeaways for businesses bracing for the changes.

Tax Deductions Take Center Stage

OBBBA introduces new deductio