OBBBA in 2026: Immediate Action Required for Employers
Takeaways The IRS ended 2025 transition relief so payroll systems, reporting workflows and workforce policies should be fully operational in 2026 for information returns, benefit plan operation, immigration compliance pressure, and workforce policy impacts. Immigration and benefits compliance costs rise in 2026, driven by new OBBBA mandated immigration fees, heightened worksite enforcement expectations and benefit plan updates. OBBBA provisions continue phasing in through 2028; employers should engage counsel and vendors proactively to manage compliance risk and minimize disruption. Related links OBBBA’s Tips & Overtime Tax Break: Reclassification Considerations, Reporting Requirements, Industry Impact + More IRS Guidance on Claiming the New Tax Deduction for Tips and Overtime Pay IRS 2025 Penalty Relief — A Break for Employers Under OBBBA’s Tax Reporting Rules New Tax-Advantaged Savings Accounts for Children: Trump Accounts Expected to Go Live in 2026 Federal OBBBA Roundup: What E...