Surgent's Taxation of Tips and Overtime Under OBBBA

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.

Delivery Method: Individual webcast
CPE Credit: Taxes
Program Level: Basic

This course is being offered by a 3rd party vendor and will not be accessible on your My CPE page. Webinar access information will be emailed directly to you by Surgent McCoy.

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