An act of legislation that increased the minimum wage, simplified pension rules and adjusted taxes for small businesses. The act also made adjustments to S Corporation regulation, rules surrounding safe harbor provisions and rules governing worker employment status. It also simplified the administration and maintenance of 401(k) plans, with the aim of making more employers want to provide this type of retirement plan to its employees.
Besides increasing the minimum wage, the act significantly expanded the number of corporations that could take advantage of S Corporation elections, including the allowance of some banks and financial services firms to become this type of corporation.