The One Big Beautiful Bill (OBBBA) offers major corporate tax breaks—lower rates and expanded depreciation—that could, in theory, boost employee benefits like health insurance, retirement plans, or paid family leave. But many companies may not pass those savings on.
That said, the law adds real incentives. Starting in 2026, employers can claim a refundable tax credit of 12.5%–25% for wages paid during family or medical leave. This also applies to leave insurance and newer employees, expanding access to paid time off.
The bill also raises the FSA contribution limit to $7,500, promotes telehealth under high-deductible plans, and supports direct primary care, childcare tax credits, and student loan repayment benefits (up to $5,250 per year, tax-free).
To make these changes count, employers must actively update their benefit plans—and employees should ask how (or if) these tax breaks are improving their workplace support.
