Taxation of Tips and Overtime Under OBBBA
2.00 Credits
Member Price $105
Non-Member Price $135
Overview
Arguably the most discussed topics to come out of the One Big Beautiful Bill Act (OBBBA) are the taxation of tips and overtime. Practitioners need to understand these provisions now, as they are effective for 2025 tax returns. This program provides practitioners with the background currently available to advise clients regarding these two important tax developments. Both employers and employees need to understand these timely changes to taxation.
Highlights
• $12,500 deduction per individual for qualified overtime pay • Payment of overtime under the Fair Labor Standards Act (FLSA) • Calculating the “premium portion” of the extra half-time pay • Social Security and Medicare withholding • Employer furnishing the record of qualified overtime compensation to employees • Definition of a qualified tip • IRS list of traditionally-tipped occupations • $25,000 deduction for reported tips • The transition rule allowing employers to indicate the approximate amount designated as tips or overtime • State tax issues relating to tips and overtime • Changes in the W-2 reflecting new employer reporting responsibilities
Prerequisites
None
Designed For
All accounting and finance practitioners
Objectives
• Expertly advise clients regarding the latest on taxation of tips and overtime emanating from OBBBA
Leader(s):
Leader Bios
Christopher Wills, Surgent McCoy CPE, LLC
Chris Wills, is a partner with MillerSearles LLC. He has been affiliated with the firm, as well as its predecessor, for over 20 years. Prior to that time, he had approximately 4 years of “Big 4” experience in a tax department with KPMG Peat Marwick. He graduated in 1989 from the University of Maryland with a Bachelor of Science degree, Magna Cum Laude. His primary area of expertise includes individual and corporate tax planning and consulting. He is the tax partner in the firm who spends much of his time researching technical tax issues as well as reviewing business and individual tax returns. He has worked with numerous industries including warehousing and logistics, health care, and retail and wholesale sales.
Non-Member Price $135
Member Price $105