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according to the White House and supporters, made commerce much more difficult with onerous and overreaching regulatory policies. Key payroll-related activities of some agencies, such as the Education Department (for student loan garnishment administration) and the Consumer Financial Protection Bureau, have generally been halted. Others, like the Labor Department and the Internal Revenue Service, are severely limited by personnel cuts. Those doing payroll in the U.S. are concerned about diminishing federal government service levels and assistance in resolving labor and tax compliance issues. After the initial effort to reduce the size of the government’s workforce, the executive branch has needed to coax some workers
back to shore up basic functions of the government to comply with laws that still need to be administered. With reduction in force across the Labor Department, 2026 most certainly will emphasize educating and aiding employers more than on regulations upholding worker protections. The department has pledged to eliminate 10 existing regulations for each new one promulgated. The IRS’s mission also is being reworked to serve more directly the administration’s priorities, all while staffing is cut by around 25%. Payroll and the One Big, Beautiful Bill Act Among the many priorities the Trump Administration proclaimed as it came into power were the need to extend tax cuts and policies set in the first Trump presidency and create carve-out provisions to eliminate taxation of overtime pay and tips, according to campaign promises. Not only did the Republican- controlled Congress address the extension issue, but they finished work on the legislation well before provisions were set to expire at the end of 2025.
The IRS’s mission also is being reworked to serve more directly the administration’s priorities, all while staffing is cut by around 25%.
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GLOBAL PAYROLL MAGAZINE ISSUE 19
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