The One Big Beautiful Bill - Decoded for Small Business
By VICKY BROWN
The American Families and Workers Tax Relief Act of 2025 — or as some are calling it, the One Big Beautiful Bill — is here, and it’s about to rewrite the rules for how we handle benefits, compliance, and employee support.
I’m not going to sugarcoat it. This is one of the most sweeping workplace laws we’ve seen in years, and it’s going to touch almost every employer in the country. Whether you’ve got two employees or twenty, there’s something in here that will affect you. The question is: will you see it coming and get ahead of it — or be stuck playing catch-up?
Why You Can’t Ignore This Bill
The OBBB covers a lot of ground — tax credits, healthcare, paid leave, retirement plans. Some of it gives you more options and potential cost savings. Some of it piles on new administrative headaches. And if you’re not paying attention, it can quietly put you at risk.
I’m breaking this into two parts so we can go deeper without overwhelming you. This week, we’re talking health plans and paid leave — because those are the changes most likely to hit your desk first.
Health Plans: Telehealth Gets a Green Light
Let’s start with high-deductible health plans (HDHPs) — the ones usually paired with Health Savings Accounts (HSAs).
Under the old rules, if you offered telehealth visits before the deductible was met, you risked disqualifying your plan from HSA eligibility. The OBBB removes that barrier. Now, you can keep covering telehealth — virtual doctor visits, therapy sessions, mental health check-ins — before the deductible, and your employees can still contribute to their HSA.
Sounds simple, but here’s the part a lot of business owners will miss: you can’t assume your insurance carrier is making these changes for you. Review your plan materials, talk to your benefits broker, and make sure it’s spelled out clearly. Then tell your employees. If they don’t know the benefit exists, it’s not really a benefit.
Paid Family and Medical Leave: The Tax Credit Goes Permanent
This one’s a big shift.
Back in 2017, the federal government rolled out a temporary tax credit for employers who offered paid family and medical leave. The credit kept getting extended a year or two at a time — making it nearly impossible for small businesses to plan long term. The OBBB locks it in. It’s now permanent, and it’s even more generous.
Here’s what’s new:
- You can now claim the credit not only on wages paid during leave, but also on certain insurance premiums you cover during that time.
- If you operate in a state with its own paid leave program, you can qualify for the federal credit when your benefits go beyond the state minimums. That’s brand new.
To qualify, you’ll need a compliant written policy that offers:
- At least two weeks of paid family and medical leave per year
- Paid at no less than 50% of the employee’s regular wages
- Available to all qualifying employees — not just execs or full-time staff
“… you can’t assume your insurance carrier is making these changes for you. Review your plan materials, talk to your benefits broker, and make sure it’s spelled out clearly.“
The Complication for Multi-State Employers
If your team works in more than one state, this is where it gets messy. Every state has its own notice requirements, wage replacement rates, and contribution rules. The federal rules layer on top of that.
One smart approach? Create a single paid leave policy that meets or exceeds the most generous state rule in your footprint. It’s cleaner, easier to administer, and keeps you eligible for the federal credit.
Remember: This Doesn’t Replace FMLA
The federal Family and Medical Leave Act (FMLA) is still in place, guaranteeing up to 12 weeks of unpaid, job-protected leave for eligible employees. Paid leave under your policy will usually run at the same time, but not always. In some states, the paid portion can go longer — and employees may choose to stagger their time off to maximize it.
Bottom line: if you want the credit, you have to play by the rules. And that means documenting your policy, tracking your leave usage carefully, and making sure your systems can handle the extra complexity.
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This Is Just the Beginning
Health plans and paid leave are only part of the story. Next week, we’ll get into the other changes in the OBBB — from retirement plan requirements to student loan repayment assistance to dependent care updates, plus what this all means for compliance and enforcement.
For now, your homework is simple:
- Pull your health plan documents and confirm the telehealth provision.
- Review your paid leave policy to see if it meets the new federal credit requirements.
- If you operate in more than one state, start mapping out where your policies align — and where they don’t.
The law’s already in motion. The sooner you get your arms around it, the better chance you have of turning these changes into a business advantage instead of a compliance nightmare.