On July 3, 2025, the U.S. government passed a sweeping tax reform known as the One Big Beautiful Bill. As the name suggests, this new legislation introduces major changes to how federal taxes are calculated for individuals and families. Whether you’re a taxpayer, employer, or payroll professional, understanding these updates is essential—they directly affect your earnings, deductions, and what appears on your paystub.
At SecurePayStubs, We’re currently working behind the scenes to update our paystub system to reflect the latest federal tax law changes from July 2025. While the updates are not live just yet, you can continue generating fully compliant paystubs based on current regulations.
What’s Changed Under the New Law?
Higher Standard Deduction = Lower Taxable Income
One of the most notable updates in the bill is the increase in the standard deduction:
- Single filers: Increased from $15,000 to $15,750
- Married filing jointly: Increased from $30,000 to $31,500
- Additional deduction: An extra $750 for eligible filers (such as seniors or visually impaired individuals)
What it means for your paystub: With a higher standard deduction, less of your income is subject to federal tax—resulting in more take-home pay.
Child Tax Credit Increased to $2,200
Families with qualifying children will now benefit from a higher Child Tax Credit, raised from $2,000 to $2,200 per child.
While this doesn’t appear directly on your paystub, it plays a significant role in your year-end tax filing. With SecurePayStubs, you can easily keep accurate records to support your tax return.
No Federal Tax on Tips & Overtime (for Eligible Incomes)
One of the most impactful updates in the bill affects hourly and service-based workers:
If you earn less than $150,000 annually, the following income is now partially tax-exempt:
- Tip income: No federal tax on tips up to $25,000
- Overtime pay: No federal tax on overtime up to $12,500
This change allows many employees to see a noticeable increase in net pay, especially those working in industries that rely on tips and overtime.
What’s Happening at SecurePayStubs?
We’re actively implementing the new tax changes, including:
- Updated deductions – In progress
- Adjusted tax brackets – Coming soon
- Smart handling of tax-free tips & OT – Under development
- Accurate, clean, IRS-compliant paystubs – Always guaranteed
What’s Next?
Stay tuned! As soon as our July 2025 tax law updates are live, you’ll be able to generate paystubs that fully reflect the latest legislation—automatically.
In the meantime, you can still:
- Create current, compliant paystubs instantly
- Preview your stub before downloading
- Get peace of mind with accurate calculations