Section 174 has long been a source of confusion for small business owners navigating R&D expenses. In this episode, we dive into what Section 174 is, the recent changes introduced through the One Big Beautiful Bill Act, and how these updates impact your bottom line. From immediate expensing of R&D costs to state-level differences, you’ll learn the practical steps business owners should take now to stay compliant and maximize their deductions.

• [01:05] What Section 174 is and why small business owners should care
• [02:07] Major changes since the 2017 Tax Cuts and Jobs Act — and what OB3 restores
• [03:15] Real-world impact of R&D expenses on small business tax filings
• [04:05] Three key action steps: recordkeeping, cash flow planning, and working with tax advisors
• [04:44] State-level differences to watch for when applying deductions
• [05:03] How to stay up to date with IRS guidance and evolving tax rules

This content is based on generally accepted HR practices, is advisory in nature, and does not constitute legal advice or other professional services. ADP does not warrant or guarantee the accuracy, reliability, and completeness of the content. Employers are encouraged to consult with legal counsel for advice regarding their organization's compliance with applicable laws. This content is current as of the published date.

Copyright © 2025 ADP, Inc. All Rights Reserved. The ADP logo, ADP, RUN Powered by ADP, and HR{preneur} are registered trademarks of ADP, Inc. and its affiliates. All other marks are the property of their respective owners.

Privacy at ADP

The One Big Beautiful Act was enacted on July 4, 2025. This legislation includes several significant changes that impact small businesses and their employees, particularly in areas of payroll, employment tax, and employee benefits. In this episode, we break down the One Big Beautiful Bill Act and what it means for small businesses. From tax changes to new deductions, we cover the most important updates you need to know to stay compliant and maximize opportunities. Listen in as we cover:

• [01:00] Overview of the One Big Beautiful Bill Act and its impact on small businesses
• [01:45] Federal income tax changes and what they mean for owners
• [05:10] New deductions for qualified overtime and tips, including retroactive rules
• [05:50] SALT deduction cap increase and benefits for high-tax states
• [06:55] Immediate expensing of R&D expenditures plus other business tax updates
• [09:05] Practical steps for business owners to prepare and take advantage of the changes

This content is based on generally accepted HR practices, is advisory in nature, and does not constitute legal advice or other professional services. ADP does not warrant or guarantee the accuracy, reliability, and completeness of the content. Employers are encouraged to consult with legal counsel for advice regarding their organization's compliance with applicable laws. This content is current as of the published date.

Copyright © 2025 ADP, Inc. All Rights Reserved. The ADP logo, ADP, RUN Powered by ADP, and HR{preneur} are registered trademarks of ADP, Inc. and its affiliates. All other marks are the property of their respective owners.

Privacy at ADP

Meal and rest breaks can help boost employee efficiency and many states have laws that require employers to provide these breaks. Whether employers provide rest breaks and meal periods voluntarily or because they are required to do so, there may be times when employees misuse this time, such as by taking unauthorized extensions. This podcast will provide ideas for employers to help prevent and respond to such misuse. Listen in as we cover:

• [01:08] Pay rules for rest periods
• [01:55] Pay rules for meal periods
• [02:45] Responding to unauthorized extensions of rest breaks
• [04:22] Responding to unauthorized extensions of meal periods

This content is based on generally accepted HR practices, is advisory in nature, and does not constitute legal advice or other professional services. ADP does not warrant or guarantee the accuracy, reliability, and completeness of the content. Employers are encouraged to consult with legal counsel for advice regarding their organization's compliance with applicable laws. This content is current as of the published date.

Copyright © 2025 ADP, Inc. All Rights Reserved. The ADP logo, ADP, RUN Powered by ADP, and HR{preneur} are registered trademarks of ADP, Inc. and its affiliates. All other marks are the property of their respective owners.

Privacy at ADP