The HR Huddle HR, We Have a Problem - The real compliance playbook for 2026 and why the One Big Beautiful Bill, AI legislation, and retirement plans can no longer be managed in isolation.
In this special episode* of HR, We Have a Problem, Teri Zipper and guest Zach Keep, Manager, Compliance Risk at Paychex, break down the compliance and regulatory shifts that HR professionals, finance teams, and business owners need to track in 2026. They dig into the One Big Beautiful Bill Act and what the "no tax on tips and overtime" provision actually means for employees. The conversation moves through AI legislation at the state level, where new laws are multiplying faster than federal guidance can keep up, and into retirement plan incentives that are making 401(k) adoption more accessible for small businesses than ever before.
Key points covered include:
↪️ The "no tax on tips and overtime" provision in the One Big Beautiful Bill is a refundable tax credit, not a true exemption, and employees should weigh the tradeoffs before adjusting their withholding.
↪️ Federal tax credits under Secure 2.0, including credits for plan establishment and employer matching, have lowered the cost barrier enough that small businesses can now offer 401(k) plans without significant financial risk.
↪️ AI regulation is moving faster at the state level than the federal level, with most legislation focused on deepfakes, privacy protections, and automated decision-making, but that picture will likely shift through 2026.
↪️ Worker classification rules are still in flux, with litigation pending on the 2024 independent contractor rule, and state and local employment laws are filling gaps that federal rollbacks leave behind.
For up-to-date compliance resources for your business, visit: paychex.com/state-resources
*This podcast episode is sponsored by Paychex.
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Teri Zipper
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Zach Keep
Paychex