HR and Employment Impacts of the “Big Beautiful Bill” 

What Employers Need to Know



On July 4, 2025, President Trump signed into law the much-anticipated One Big Beautiful Bill Act (OBBBA)—a sweeping legislative package combining tax cuts, deregulatory measures, and entitlement reform. From a human resources and employment standpoint, the bill has both immediate and long-term implications for employers.

“No Tax on Overtime and Tips” a Reality – for Now

Among the bill’s most impactful employment-related provisions is the creation of a new federal tax exclusion for workers who earn tips or overtime pay. Employees can deduct up to $25,000 in reported tips or $12,500 in overtime from their taxable income, creating a potential net increase in take-home pay—especially in hospitality, retail, and healthcare. These provisions sunset in 2028, but in the near term, they may affect recruitment and retention strategies, particularly for lower-wage jobs. However, eligibility rules are narrow, tip exclusions apply only to cash-based tips, and HR departments must be ready to support payroll providers with updated reporting processes and clear employee communications. The OBBBA instructs the Internal Revenue Service (IRS) to issue guidance on the implementation of these provisions, therefore, we can expect the mechanics of how this will work in practice to be forthcoming as we head into fall. Will these provisions ultimately become permanent? Time will tell. However, these changes do not impact their taxability on a state level.

Small businesses are the heart of the Massachusetts economy and a big part of our legacy of innovation. 

This year, Mass Growth Capital Corporation joined forces with MassDevelopment to better support small businesses across the state.

With our expanded team and offerings, we’re now working with businesses of all sizes to help them thrive in today’s global economy.

• Financing including microloans, lines of credit, and real estate enhancement financing are available to cover the cost of everyday expenses. 

• Grant programs for community nonprofits (delivering essential services to small businesses to help them resolve challenges and manage operations) and small businesses (thru Biz-M-Power).

• New statewide small business resources directory for additional targeted assistance.

Let us help with your next project. Call 617-330-2000 to reach a business development professional in your region or visit www.massdevelopment.com today.

Press Release: Blackstone Heritage Corridor Appoints Anya Wilczynski as Executive Director

Congratulations Anya!

Sales Tax Holiday Weekend Set for

August 9 & 10, 2025

The MA House of Representatives and State Senate today adopted resolutions (H.4220 & S.2530) setting the date for this year’s annual Sales Tax Holiday weekend, for August 9 & 10, 2025.

The sales tax exemption applies for those two days to any retail purchase made in the Commonwealth, both in-store and online, of $2,500 or less, with certain exceptions. While the rules of the holiday weekend remain the same as in recent years, members are encouraged to closely review these helpful FAQs from the MA Department of Revenue (DOR). Note, the FAQs link refers to the 2024 dates but will soon be updated. 

For more information, the specific rules governing the Sales Tax Holiday can be found in the DOR regulation, 830 CMR 64H.1.8: Sales Tax Holiday.

EcoTarium’s 200th Birthday Party: Celebrating the 200th Day of Our 200th Year!

Saturday, July 19, 2025

10:00 am – 6:00 pm

Join us as we celebrate 200 years of curiosity, exploration, and community! On the 200th day of our 200th year, the EcoTarium invites you to an unforgettable birthday party that brings the Worcester community together. FREE Admission, but donations will be graciously accepted!