CBZ CBIZ Inc

New overtime and tip-income reporting rules under the One Big Beautiful Bill Act (OBBBA) are set to impact food and beverage employers starting in the 2025 tax year. These changes necessitate updates to payroll systems to accurately track and report compensation, even though W-2 forms will not be revised until 2026. Proactive planning and coordination with payroll partners will help businesses avoid compliance issues and streamline reporting processes.

This article provides a 2026 compliance outlook based on CBIZ's Q4 compliance conversation, highlighting key themes for HR and benefits leaders. It covers critical developments such as government shutdown impacts on Marketplace tax credits, continued momentum in healthcare data transparency rules, and significant provisions introduced by the One Big Beautiful Bill Act. Employers are advised on areas like HSA compatibility, DPC arrangements, dependent care, educational assistance, tax credits for family leave, Trump Accounts, ACA updates, and fiduciary rule revisited to navigate the evolving regulatory landscape.

A Kansas City-based entrepreneurial investment firm sought to fill a unique Chief of Staff role combining strategic oversight with administrative duties for their fast-growing ventures. CBIZ Talent Solutions conducted a contingent search, identifying 319 qualified candidates and resulting in a successful placement within 45 days. This successful placement subsequently led to an expansion of the engagement to recruit for other senior leadership positions within the firm's portfolio.

The U.S. life sciences industry experienced a significant reset in 2025, characterized by cooled hiring, normalized investment patterns, and federal research funding uncertainty. Despite these challenges, wages rose, productivity increased, and companies accelerated digital transformation, leading to a leaner, more specialized sector driven by technology, talent, and regulation. The article highlights shifting workforce dynamics towards specialized skills, a reset in capital markets favoring medical devices, and the need for diversified funding strategies due to federal funding volatility.

New regulations under the One Big Beautiful Bill Act (OBBBA) are changing how employers report qualified overtime compensation, introducing a new above-the-line tax deduction for employees. Starting in tax year 2026, employers must separate the overtime premium portion of pay from regular wages on Form W-2 using Code TT in Box 12. This article explains how to define and calculate qualified overtime, what is excluded, and provides guidance for employers to prepare for compliance, including transition relief for 2025.

Artificial intelligence is already transforming HR operations, moving beyond simple automation to reduce risk, improve decision-making, and enhance the employee experience. Key areas impacted include payroll accuracy and compliance, workforce analytics, employee engagement through self-service, and proactive compliance monitoring. While AI enhances efficiency, human oversight remains crucial for responsible implementation and maximizing its benefits in HR.