Keeping up with compliance and regulatory changes is vital to every business, and it can even become a strategic advantage.
ADP’s Meg Ferrero shares insights into how staying ahead of compliance can help future-proof your policies and set you up to win on the talent market.
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Meg Ferrero, Vice President Assistant General Counsel, ADP
To be an employer of choice, you need to provide benefits, and you need to do it in a way that makes sense for you. There are a few changes that are benefiting workers this year. Three of them are coming from the One Big Beautiful Bill act. And then there's also some changes that are coming related to paid sick leave under the one big beautiful bill. You've got changes related to dependent care assistance, plans to student loan repayment programs, and also the Trump accounts that are coming into effect this year. From a dependent care assistance Program perspective we saw an increase in the amount that are eligible for tax exclusion from $5000 to $7500. And that's a big change for for individuals because those amounts have not changed since 1986. So while they will not be indexed for inflation, it is a big change for everyone. The second thing related to student loan repayment the amounts are staying the same. So it's still a reimbursement of up to $5,250 per year. But we have an opportunity to have that amount made permanent. It's the exclusion is now permanent. And then on top of it, those amounts are going to start being indexed for inflation on an annual basis. And then the third thing under the one big beautiful bill is the Trump Accounts. And those are coming into effect on July 4th. The accounts can then start taking contributions. The contributions can come from employers and from individuals. You can contribute up to $5,000 per child up to age 18 into those accounts, and employers can contribute up to $2500 per employee, which can go into those various accounts. The last thing that I want to talk about is changes that are coming on the paid sick leave front. They're happening across the United States, and they're really focused on two areas. One is related to the reasons that an individual can take leave, and we're seeing changes there related to the ability for people to take leave to attend to judicial or administrative immigration proceedings. They're also related to individuals being able to take leave to manage their housing needs. And we've seen some changes related to the ability to take time to donate blood and other other circumstances. The other thing that we're seeing on the paid leave front is that there are municipalities and some states that are also increasing the amount of time that is required to be provided to individuals based on the number of hours that they work. So lots of changes on the benefits front that I think will be good for employees as well as for employers.
