--- title: 3 provisions of the one big beautiful bill impacting employers description: Here are three provisions in the One Big Beautiful Bill Act that impact employee benefits and business operations. image: https://insights.bukaty.com/hubfs/2025/2025%20HR%20Matters/October%202025/HR%20Matters-OCT-social-post-graphic-10-30-25-A.jpg --- [![Bukaty Companies logo](https://insights.bukaty.com/hubfs/BukatyCompanies_April2016/layout/bukaty-logo-2015.png)](https://bukaty.com/) - [About Us](https://www.bukaty.com/about-us) - [Contact Us](https://www.bukaty.com/contact-us) - [Employee Benefits](https://www.bukaty.com/employee-benefits) - [Strategic Planning](https://www.bukaty.com/employee-benefits/strategic-planning) - [Data Analytics](https://www.bukaty.com/employee-benefits/data-analytics) - [Pharmacy Cost Control](https://www.bukaty.com/employee-benefits/pharmacy-cost-control) - [Disease Management & Wellness](https://www.bukaty.com/employee-benefits/disease-management-wellness) - [Technology Integration](https://www.bukaty.com/employee-benefits/technology-integration) - 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Since it was signed into law on July 4, 2025, the provisions within the legislation have begun to impact employee benefits and employer operations, with more changes on the way. Employers should take inventory of these noteworthy components. Overtime pay and qualified tip taxation For the 2025 tax year through 2028, [eligible](https://www.irs.gov/newsroom/treasury-irs-issue-guidance-listing-occupations-where-workers-customarily-and-regularly-receive-tips-under-the-one-big-beautiful-bill) tipped employees earning $150,000 or less may be able to deduct up to $25,000 in [tips](https://www.congress.gov/bill/119th-congress/house-bill/1/text#:~:text=SEC.%2070201.%20NO%20TAX%20ON%20TIPS.). Employees earning less than $150,00 annually who receive overtime pay also will be eligible to deduct up to $12,500 in [overtime](https://www.congress.gov/bill/119th-congress/house-bill/1/text#:~:text=SEC.%2070202.%20NO%20TAX%20ON%20OVERTIME.) pay from federal income tax. Employers should consider how overtime pay reporting requirements may need to be adjusted before yearend. HSAs and additional qualified expenses Health savings account (HSA) funds can be used for direct primary care (DPC) services starting January 1, 2026, up to $150 monthly for an individual and $300 for families. DPC practices allow members to pay a fixed monthly fee for access to health care professionals without a per-visit charge. Additionally, those enrolled in a high deductible health plan (HDHPs) with an HSA can now permanently utilize telehealth services prior to meeting their deductible. Dependent care savings The annual limit for dependent care flexible spending accounts (FSAs) contributions will increase to $7,500, or $3,750 for married couples filing separately, on January 1, 2026. This increase is the first since 1986. The scope of the OBBBA is overarching, with components trickling down to many areas of employer operations. For more information on how the OBBBA or other legislation may [impact](https://insights.bukaty.com/trump-tax-bill-augments-employer-sponsored-benefits) your employee benefits and compliance gameplan, [consult](mailto:info@bukaty.com) with a Bukaty Companies expert. [View printable PDF version here](https://insights.bukaty.com/hubfs/2025/2025%20HR%20Matters/October%202025/HR%20Matters%20October%202025%2009-30-25-B.pdf) Blog Category: [Benefits](https://insights.bukaty.com/hr-matters/topic/benefits) ## Related Posts [Making Sense of Medicare](https://insights.bukaty.com/hr-matters/making-sense-of-medicare) [5 Wellness Program Designs to Build a Healthier Workforce](https://insights.bukaty.com/hr-matters/5-wellness-program-designs-to-build-a-healthier-workforce) [Avoid compliance risks: 6 HR recordkeeping rules](https://insights.bukaty.com/hr-matters/avoid-compliance-risks-6-hr-recordkeeping-rules) [View All](https://insights.bukaty.com/hr-matters/3-provisions-of-the-one-big-beautiful-bill-impacting-employers) ### View posts by category - [Benefits (9)](https://insights.bukaty.com/hr-matters/tag/benefits) ![blue line, red square orange square blue square green square light blue square blue line](https://insights.bukaty.com/hubfs/BukatyCompanies_April2016/images/breaker-1.png) - [EMPLOYEE BENEFITS](https://www.bukaty.com/employee-benefits) - [Strategic Planning](https://www.bukaty.com/employee-benefits/strategic-planning) - [Data Analytics](https://www.bukaty.com/employee-benefits/data-analytics) - [Pharmacy Cost Control](https://www.bukaty.com/employee-benefits/pharmacy-cost-control) - [Disease Management & Wellness](https://www.bukaty.com/employee-benefits/disease-management-wellness) - [Technology Integration](https://www.bukaty.com/employee-benefits/technology-integration) - [Employee Engagement](https://www.bukaty.com/employee-benefits/employee-engagement) - [Worksite & International Benefits](https://www.bukaty.com/employee-benefits/worksite-and-international) - [M&A Services](https://www.bukaty.com/employee-benefits/m-and-a-services) - [BENEFIT ADMINISTRATION](https://www.bukaty.com/benefit-administration) - [HSA](https://www.bukaty.com/benefit-administration-2/health-savings-account-hsa) - [HRA](https://www.bukaty.com/benefit-administration-2/health-reimbursement-arrangement) - [FSA](https://www.bukaty.com/benefit-administration-2/flexible-spending-account) - [COBRA](https://www.bukaty.com/benefit-administration-2/cobra-administration) - [Combined Billing](https://www.bukaty.com/benefit-administration-2/combined-billing) CORPORATE HEADQUARTERS - 4601 College Blvd., Suite 100, 200 - Leawood, KS 66211 - Benefits phone: 913.345.0440 - P&C phone: 913.951.2400 - [HR CONSULTING & TRAINING](https://www.bukaty.com/hr-consulting) - [Project Work](https://www.bukaty.com/hr-consulting-pages/project-work) - [Training](https://www.bukaty.com/hr-consulting-pages/training) - [Recruiting](https://www.bukaty.com/hr-consulting-pages/recruiting) - [HR Placement](https://www.bukaty.com/hr-consulting-pages/hr-placement) - [HR Concierge](https://www.bukaty.com/hr-consulting-pages/hr-concierge-service) - [PAYROLL & ACCOUNTING](https://www.bukaty.com/payroll-accounting-3) - [Payroll Administration](https://www.bukaty.com/payroll-accounting-2/payroll-administration) - [Time & Attendance](https://www.bukaty.com/payroll-accounting-2/time-and-attendance) - [Human Resource Capabilities](https://www.bukaty.com/payroll-accounting-2/human-resource-capabilities) - [Accounting Services](https://www.bukaty.com/payroll-accounting-2/accounting-services) ### KANSAS CITY, MISSOURI - 9200 NE Barry Road, Suite 200 - Kansas City, MO 64157 - Phone: 816.781.4922 - [COMPLIANCE](https://www.bukaty.com/compliance) - [Compliance √](https://www.bukaty.com/compliance-pages/compliance-check-audit) - [Affordable Care Act](https://www.bukaty.com/compliance-pages/affordable-care-act) - [BUSINESS & PERSONAL INSURANCE](https://www.bukaty.com/business-and-personal-insurance) - [Business Insurance](https://www.bukaty.com/business-and-personal-insurance/business-insurance) - [Personal Insurance](https://www.bukaty.com/business-and-personal-insurance/personal-insurance) - [ABOUT US](https://www.bukaty.com/about-us) - [WHY BUKATY COMPANIES](https://www.bukaty.com/why-chose-bukaty) - [CAREERS](https://www.bukaty.com/careers) - [CONTACT US](https://www.bukaty.com/contact-us) ### LAWRENCE, KANSAS - 1811 Wakarusa Dr, Suite 101 - Lawrence, KS 66047 - Phone: 913.345.0440 ### ROSSVILLE, KANSAS - P.O. 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