Even More Big Beautiful Bill…
By VICKY BROWN
The American Families and Workers Tax Relief Act of 2025 – also known as the One Big Beautiful Bill – is one of the most sweeping workplace laws we’ve seen in years. And while Part 1 tackled healthcare and paid leave, Part 2? It dives straight into retirement plan compliance, student loan benefits, and a host of new tax-related provisions that will hit small businesses fast.
If you’re a founder or small business owner, this isn’t just a policy update. It’s a heads-up – because enforcement is already ramping up.
Let’s start with retirement plan compliance in 2025. The bill encourages more employers – especially small businesses – to offer some kind of retirement plan. That could be a 401(k), an IRA, or one of the new simplified options designed for small employers.
One of the biggest changes? Automatic enrollment.
Under the new rules, employees must be enrolled in your retirement plan by default unless they actively opt out. Now, it’s aimed at new plans but you still need to double check to be sure you’re compliant.
And yes, mandatory opt ins are great for boosting participation, but it also means you’ll need to closely track who’s eligible, when they start, whether they opted out, and if they change their contributions. If your payroll system or benefits admin isn’t ready for that level of detail, now’s the time to upgrade.
And if you don’t offer a retirement plan yet, this is your opportunity to reconsider. New tax credits make it more financially feasible, and the government is clearly signaling this is on the ‘important’ list.
There’s also a major boost to the Saver’s Credit – a federal tax credit for low- to moderate-income employees who contribute to retirement accounts. For eligible workers, it could mean a $1,000 to $2,000 credit toward their tax bill. That might not sound like much, but for someone hesitant to start saving, it could be the push they need. It’s also a great way to frame retirement benefits as a true value-add when you’re trying to retain talent.
Beyond retirement, there are big changes to student loan assistance and dependent care too.
“… agencies now have more resources, more staff, and more authority to audit and enforce these and other changes.“
The $5,250 student loan repayment benefit – previously temporary – is now permanent. If you’ve offered this through an educational assistance program, that’s great news. But be sure to update your plan documents accordingly, and know that inflation indexing begins in 2027.
For working parents, the dependent care FSA cap is increasing to $7,500 per household starting in 2026. That’s a significant increase – and one you’ll need to reflect in your open enrollment planning.
And yes – the new “Trump Account” is a thing. It’s a retirement savings option for minors, funded by employer contributions up to $2,500 a year. Starting in 2026, it could be a creative benefit for businesses with younger employees or family-owned teams – but only if you establish a compliant written program in advance.
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Now, here’s the part too many business owners overlook: enforcement.
Federal agencies now have more resources, more staff, and more authority to audit and enforce these and other changes. Some provisions are already active, others kick in during 2025 and 2026, but the oversight is already growing. If your current systems or vendors aren’t up to speed, this is your warning shot.
So what should you do next?
Start by checking in with your payroll provider. Talk to your benefits broker. Review your written plan documents. And if you need help navigating what applies to your business – reach out. This isn’t something you need to figure out on your own.
Yes, it’s a lot. But you’ve weathered change before. With a little planning and the right team behind you, you’ll move through this one with confidence too.