Money

Unlocking Savings: New Tax Breaks for Overtime and Tips – What Employers Need to Know

Unlocking Savings: New Tax Breaks for Overtime and Tips – What Employers Need to Know

In a sweeping move set to reshape employee paychecks, the newly enacted One Big Beautiful Bill Act (OBBBA) introduces two significant federal tax deductions for hourly workers: one for overtime pay and another for tip income. Dubbed the “No Tax on Overtime” and “No Tax on Tips” provisions, these changes mean that from 2025 through 2028, many employees can exclude…

Read More