H.R. 1 became law as Public Law 119-21, the “One Big Beautiful Bill Act” or “OBBBA,” on July 4, 2025. Although several of the most significant employer-facing provisions affected operations in 2025, the focus shifts to full...more
As we wrote on July 14, 2025, the One Big Beautiful Bill Act (OBBA) contains a provision providing a tax deduction for employees’ overtime income in 2025 through 2028....more
W-2s and 1099s will not have new fields this year, but the IRS has now provided guidance on how employees can still claim tax deductions for tips and overtime pay. This is our fourth update on the evolving tips and overtime...more
In a welcome development for employers that were struggling to determine how to comply with the reporting requirements of the “One Big Beautiful Bill Act” relating to “no tax on tips” and “no tax on overtime,” the IRS...more
The Internal Revenue Service (IRS) released guidance on November 5, 2025, granting employers relief from tax penalties for failing to provide employees information related to their (1) “qualified tips” and (2) “qualified...more
The clock is ticking on 2025 payroll reporting, but the IRS just threw employers a lifeline. If your organization has been struggling to understand how to implement the new tips and overtime reporting requirements from the...more
On July 4, 2025, President Trump signed into law the so-called “One Big Beautiful Bill Act.” The Act established new above-the-line tax deductions for “qualified tips” and “qualified overtime compensation.” To facilitate...more