The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, brought sweeping payroll and HR update, but the story didn’t stop there. As fall begins, new IRS and Department of Labor guidance is emerging, clarifying how to apply deductions and stay compliant. Businesses that don’t stay on top of these updates risk missing out on savings or making costly mistakes. True PEO helps businesses across the United States keep up with every OBBBA adjustment through payroll services, HR support, and compliance oversight. Contact us today to make sure your business is aligned with the latest rules and protected from costly filing errors.
While OBBBA made headlines on July 4, the real impact of the legislation is unfolding now. As the IRS and Department of Labor review the implementation of the bill, they're releasing new guidance, clarifications, and adjustments that affect how businesses apply deductions, report payroll, and handle employee classifications.
For small and mid-sized businesses, these ongoing changes aren’t just technical details—they directly affect compliance and cash flow. Payroll and HR teams need to interpret shifting requirements while also managing day-to-day operations.
True PEO provides the clarity and support businesses need to keep up. From interpreting OBBBA guidance to filing correctly and on time, our payroll and compliance services take the guesswork out of staying legal and efficient.
As summer ends, so does the grace period for misunderstanding OBBBA. The IRS and Department of Labor have already started issuing clarifications, and enforcement is ramping up. Businesses that haven’t updated their payroll systems, HR processes, and record-keeping may find themselves exposed to fines, lost deductions, or audit triggers.
Here are the top compliance areas catching business owners off guard this fall, and how True PEO helps you stay protected:
Yes, OBBBA offers valuable deductions, up to $25,000 for tipped income and $12,500 for overtime. But these are only accessible if every dollar is tracked and filed correctly. That means no missing timesheets, no misclassified workers, and no math errors. Many small businesses simply don’t have the payroll systems in place to meet this standard. True PEO’s payroll administration services ensure every tipped and hourly dollar is recorded, calculated, and reported with complete accuracy, so you don’t lose out on deductions or trigger an audit.
Under OBBBA, employers need to pay even closer attention to how employees are classified and how filings are submitted. A mistake here can result in penalties or lost eligibility for deductions. Retroactive application of rules also means some businesses are already behind—and don’t know it yet. True PEO keeps clients aligned with both federal and state classification rules, while also managing all relevant filing deadlines to avoid fees and ensure compliance.
With the standard deduction and SALT cap shifting, and new temporary deductions like the $6,000 senior benefit, HR teams must update employee materials, tax forms, and plan documents to reflect current law. Missing this step can create legal liabilities or employee confusion. Our HR compliance team updates your internal documents and benefits processes to align with every new requirement, so you can offer competitive plans without the legal risks.
Some OBBBA changes apply retroactively to earlier quarters of 2025. If your business didn’t calculate or categorize items correctly in Q2 or Q3, those errors could now result in missed opportunities, or penalties. Most small businesses won’t know there’s an issue until it’s too late. True PEO helps you audit past filings and correct missteps before they snowball into fines. We proactively catch issues, giving you time to act—before regulators do.
The IRS and Department of Labor are increasing oversight across the board. Sloppy tracking, outdated onboarding paperwork, or missing records can be the small cracks that lead to big fines. Businesses must be audit-ready year-round, not just at tax time. True PEO gives you systems and guidance for airtight documentation, so every process, every form, and every file is ready when it matters most.
Payroll law changes don’t just require attention; they demand action. OBBBA has created real savings opportunities, but only for businesses that keep up with the rules and file accurately.
True PEO helps companies across the United States manage payroll, HR, and compliance as one integrated solution. We monitor every IRS and Department of Labor update, adjust filing protocols, and ensure your business remains audit-ready.
Contact True PEO today to stay aligned with the latest OBBBA guidance and get expert support for all your payroll, HR, and compliance needs.
The IRS and Department of Labor have issued new guidance on payroll documentation, deduction eligibility, and filing standards as of Fall 2025.
Businesses must meet stricter documentation and filing requirements to access deductions, which means payroll systems and compliance processes must be updated. Contact True PEO to ensure your payroll and HR systems are compliant and audit-ready.
Yes, but only if filings are submitted on time and backed by detailed payroll records.
