The One Big Beautiful Bill – Volume 2: Overtime, Snacks, and the People Who Make Your Business Grow

The “Big Beautiful Bill” isn’t just a stack of policy pages—it’s a set of real-world changes that will show up in your breakroom conversations, payroll runs, and team morale. Two of the most talked-about updates for small and growing businesses are the new overtime tax break and the loss of the free snack tax deduction. Here’s what you need to know—and how to turn both into an advantage.

1. Overtime Just Got Sweeter—for Employees

Starting this year, eligible employees can exclude up to $12,500 in overtime “premium” pay from federal taxable income ($25,000 if married filing jointly). That means the extra half-time pay over their base rate isn’t taxed by Uncle Sam.

Why this matters for your business:

Morale boost: Employees who work extra hours will see more of that overtime pay in their pockets.

Recruitment edge: Overtime-friendly roles might be more attractive, especially to skilled workers open to longer shifts or seasonal surges.

Smart staffing: You can use voluntary overtime to handle growth spurts without hiring full-time staff prematurely.

Pro Tip: Make overtime availability clear in job descriptions and talk about the tax benefit—it’s a perk most people haven’t heard about yet.

2. Free Snacks? Now They’re on You

Until now, employers could write off the cost of in-office snacks, coffee, and meals as a tax deduction. As of 2025, that deduction is gone. You can still offer them, but you’ll be footing the full bill without the IRS sharing the cost.

Why this matters for your business:

Culture counts: Even without the write-off, small perks like good coffee or healthy snacks can keep your team energized and happy—especially during busy seasons.

Budget trade-offs: You might choose to keep the perks and cut costs elsewhere, or swap to lower-cost options without losing the sense of care and community.

Pro Tip: If you cut snacks, replace them with other low-cost morale boosters—team lunches, monthly gift cards, or occasional catered meals can still make a big impact.

Turning Changes Into Wins: Growing businesses thrive when employees feel valued. The overtime tax break is a built-in motivator you can highlight, while the snack deduction loss is a chance to get creative with non-taxable perks that keep your culture strong.

Bottom line: The rules are changing, but if you use them wisely, you can still keep your team fueled—both financially and emotionally—as you grow.