Description

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.

Instructor: Mike Tucker, Ph.D., LL.M., J.D., CPA

Target Audience

All accounting and finance practitioners

Course Objectives

Expertly advise clients regarding the latest on taxation of tips and overtime emanating from OBBBA

Subjects

$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