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beyond the scope of this article, its important that when you consider the cost of franchising your business organic qualified prospects (i.e., existing customers and contacts) that are already interested in buying Positioning – As you check out franchise sales websites you may find that they all sound the same – “be in business

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, is a significant piece of federal legislation that brings a number of changes impacting employers, particularly regarding wage and tax policies. While the law is federal, its provisions directly affect how Pennsylvania employers manage payroll, taxes, and employee benefits. Here's a breakdown of the key changes and what you should be doing to prepare. Effective Dates of Key Provisions Many of the OBBBA's employment-related changes are already in effect for the 2025 tax year, with others phasing in over the next few years. The most critical provisions for employers to note are: Retroactive to January 1, 2025: The act establishes new income tax deductions for "qualified tips" and "qualified overtime wages." Effective January 1, 2026: The tax credit for paid family and medical leave becomes more generous, and the annual limit for employer-provided educational assistance programs will be indexed for inflation. Tax Deductions for Tips and Overtime The OBBBA creates new, temporary tax deductions for employees, which, in turn, create new reporting requirements for employers. Qualified Overtime Wages: Employees can now deduct up to $12,500 ($25,000 for a joint return) of qualified overtime wages through the end of 2028. The deduction is available for hours worked over the 40-hour workweek, and the IRS has instructed employers to separately report this information on employee Form W-2s. Qualified Tips: Similarly, employees in tipped occupations can deduct up to $25,000 of qualified tips. “Qualified tips” means tips paid in cash, by credit card, or through tip sharing. Tips must be voluntary in the customer’s discretion, and cannot be required gratuities, mandatory service charges, and non-cash tips.  The IRS is expected to publish a list of covered occupations, but it's likely to include roles like servers, bartenders, and delivery drivers. Employers must also separately report this tip income on W-2s. For the 2025 tax year, employers may use a reasonable approximation to report these amounts. However, the IRS is expected to update withholding procedures for 2026 to account for these deductions.  Employers must continue to withhold on all tips and overtime compensation. W-2s will be required to state the employee’s total amount of qualified overtime compensation to reduce their federal income tax on overtime premiums, the employee must claim the tax deduction on their individual tax return. Overtime and tip compensation is still subject to Social Security, Medicare, state, and local taxes. Paid Family Medical Leave Tax Credit The OBBBA makes permanent and expands the tax credits employers may take for payments for Paid Family and Medical Leave (PFML) which were first allowed under the TCJA temporarily. Starting in 2026, to qualify for the tax credit, employers must pay employees with 6 months of service and who are employed 20 hours per week at least 50% of their normal wage while on leave for 2-12 weeks per year. Employers may still choose to offer PFML except in states where it is mandatory. In states with mandatory PFML, employers may now get a tax credit for paid leave that exceeds the mandated state amount. Costs may be offset with credits up to a percentage of wages covered. Employers who provide PFML under an insurance policy may now get a tax credit for a percentage of the benefit applied against total premiums paid. The amount of the tax credit is 12.5% on 50% of wages or premiums and is increased by .25% for each percentage point of wages paid over 50% up to a maximum of 25%. Employers must have a written PFML policy which must cover all employees and provide qualifying employees with a minimum of two weeks of PFML. Employers will be required to track employees’ leaves carefully because in the event of an audit, the IRS will require proof of policy, tracking, and payments. Permanent Telehealth and Educational Assistance Benefits The act also makes permanent some temporary benefits that were set to expire. This provides long-term clarity for employers offering these benefits to their workforce. Telehealth Services: High-deductible health plans can now permanently cover telehealth services before a plan participant meets their annual deductible. Student Loan Repayment: The OBBBA permanently extends the ability for employers to provide up to $5,250 per year in tax-free educational assistance for student loan repayments. The limit for this benefit will be indexed for inflation starting in 2026. The IRS is required to publish guidance, so employers should check for updates at  www.irs.gov  on the OBBBA page. The first guidance published on July 14 described some of the new tax breaks. On August 7, the IRS announced that W-2s and other forms will not be changed for 2025 and these changes will be made in 2026. On August 15, the IRS published a draft W-2 for 2026. By October 2, the IRS is supposed to publish a list of occupations that as of December 2024 customarily and regularly received tips. Dependent Care Flexible Spending Accounts Employees may contribute pre-tax amounts for childcare and related expenses (i.e., summer camps). The OBBBA increases the cap from $2,500 to $3,750 for employees filing separately and from $5,000 to $7,500 for employees filing jointly. As another potential perk, employers should consider whether to offer this benefit or whether to increase the cap if they already offer it, and work with their Plan Administrator to communicate changes during open enrollment. Recommended Actions for Pennsylvania Employers With these changes in motion, it's crucial for employers to take proactive steps to ensure compliance and avoid potential penalties. Update Payroll Systems: Ensure your payroll software can separately track and report "qualified overtime wages" and "qualified tips." This is a new and mandatory requirement for W-2 forms starting in 2025. Review Employee Benefits: If you offer educational assistance or high-deductible health plans, review your current policies to align with the OBBBA's permanent extensions.  Employers also may need to decide whether to offer certain benefits that may be ways to provide additional non-taxable income to employees as explained below. These benefits could be viewed as perks and incorporated into recruitment and retention strategies . Employers who want to offer them must develop written policies by January 1, 2026. Employers should look to Brokers and Plan Administrators for assistance with the written policies and communications to employees. You may want to communicate these permanent benefits to your employees. Consult with a Professional: Given the complexity of these federal tax law changes, it's highly recommended that you consult with your payroll provider, accountant, or one of Fiffik Law Group’s employment law attorneys to confirm your systems and practices are compliant. Staying on top of these changes isn't just a matter of legal compliance; it's also an opportunity to communicate valuable benefits to your employees.

why its such a risk for your business. As a result, the small business owner, in addition to the business itself, is responsible to pay the Most business owners want to avoid exposing their personal assets to business risks. As a guarantor, you are liable for a business debt to the same extent as the business. on your business’s credit report.

Small business truly does drive our economy. We also experienced a significant increase in business formation activity among Fiffik Law Group business They invested that money in diversifying and expanding their businesses. Will the Business Surge Last? The experienced business attorneys at Fiffik Law Group have launched and guided thousands of businesses.We

Many sole proprietors and small business owners were left in the cold as they were not able to apply The loan program is first come, first served so businesses that are responsive and have their ducks in It is a good loan program nonetheless and can help your business. Need help?  Our business attorneys, Michael E. Fiffik, Esquire and Lacey F. #business #businessloans #COVID #paycheckprotection

Business owners and real estate investors often consider the option of transferring ownership of their This is, by far, the biggest downside for most business owners.  Many lenders prefer working with individual borrowers rather than businesses, and the terms of financing Before making any decisions, we recommend consulting with your CPA and one of our experienced business

Transparency Act (CTA) became effective on Jan. 1, 2024 and its requirements cover over 32 million small businesses Pursuant to the CTA most small businesses must file information disclosing information and identities of owners of those small businesses with the Financial Crimes Enforcement Network (“ FinCEN ”). The experienced team of business attorneys at Fiffik Law Group are here to help you understand how the Corporate Transparency Act impact your business.

By Lacey Gordon, Esquire Earlier this month, on October 3, 2020, Pennsylvania Department of Labor & Industry published its final rule expanding Pennsylvania’s Minimum Wage Act regulations for overtime pay. The increase is the first for Pennsylvania in more than four decades. Pennsylvania’s Overtime Rule updates salary thresholds to reflect current wages paid to Pennsylvanians in executive, administrative and professional occupations and updates the duties tests for these occupations. Updates to Salary Threshold Pennsylvania’s Overtime Rule increases the minimum salary salaried executive, administrative, and professional workers must earn in order to be exempt from overtime pay. This increase will be phased in over three steps: $684 per week ($35,568 annually) effective (per federal rule) as of January 1, 2020; $780 per week ($40,560 annually) effective October 3, 2021; and $875 per week ($45,500 annually) effective October 3, 2022. Starting in 2023, the salary threshold will adjust automatically every three years. Pennsylvania’s Overtime Rule also allows up to 10 percent of the salary threshold to be satisfied by nondiscretionary bonuses, incentives, and commissions that are paid annually, quarterly or more frequently. Updates to Duties Tests The Minimum Wage Act provides an exemption from both minimum wage and overtime pay for employees employed in a bona fide executive, administrative, or professional capacity. To qualify for the exemption, employees must meet certain tests regarding their salary and their job duties. In addition to the salary threshold update, Pennsylvania’s Overtime Rule also updates the duties tests for executive, administrative, and professional workers to more closely align with U.S. Department of Labor’s federal overtime regulations. But What About Federal Law? Pennsylvania employers will need to follow both the federal overtime rules and the overtime requirements of Pennsylvania’s Minimum Wage Act. Where there are differences between the two laws, Pennsylvania employers must follow the rule that provides the greater benefit to the employee. If you have questions or would like to learn more about Pennsylvania’s Overtime Rule , please reach out. Our attorneys are here to help and would be happy to answer your questions.

Small Business Administration will re-open the Paycheck Protection Program (PPP) loan portal on Tuesday If your business is any of the following: Corporation, Professional Corporation, General Partnership, Limited Liability Company or Non-Profit Corporation All business types should provide the following: All should be fully executed (signed) by business owners. 2019 or 2020 IRS Form W-3 2019 or 2020 IRS All should be fully executed (signed) by business owners.

This election makes sense for most small businesses. We regularly advise businesses on the tax status elections available to then. Fiffik, Esquire for any business matter.

Fiffik Law Group understands the issues associated with forming, operating, and growing small businesses We make an effort to support local and small businesses in as many ways as we can, and one of the ways we do this is by spotlighting one of our clients’ exciting new businesses every month. She quickly advanced to work their tasting counter, and she even became their business-to-business sales Quoting her favorite country western song “Buy Dirt,” Ryta encourages everyone to, “find something you

Think you don’t have a problem in your business? It’s smart business to consult with one of the qualified employment law attorneys at Fiffik Law Group