January 5, 2026
The Small Business Rundown covers critical tax changes in recent legislation
What it means: The Small Business Rundown podcast shares insight into a new tax law that provides opportunities for tax deductions for small business employees.
Our take: Recent legislative changes have given small businesses the opportunity to claim several new tax deductions for employees. These deductions will be a huge benefit to the small business workforce, helping millions of Americans who rely on tips and overtime pay.
Listen now: Listen to the full episode of the Small Business Rundown for expert insight on important tax changes.
Staying on top of tax changes and what tax deductions small businesses can claim is challenging. The Small Business Rundown provides expert insight into important tax changes in recent legislation that will help small businesses and employees save come tax season.
A new tax law allows workers to make significant tax deductions, including up to $12,500 per year for qualified overtime compensation ($25,000 for joint filers) and up to $25,000 per year in tips deductions. While these tax deductions are employee-driven, small business employers do have a reporting requirement on W2 forms for workers to realize these deductions.
The new no tax on tips and no tax on overtime pay provisions are retroactive starting in 2025 through 2028. These tax savings are a boon to the small business workforce and will provide millions of Americans with much-needed tax savings.
The NFIB Small Business Legal Center recently hosted a webinar available on-demand that covers important tax changes employers need to know. Listen to the full episode of the Small Business Rundown to stay up to date on the latest tax changes. New episodes are available every two weeks on Thursdays.
NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
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