OBBBA No tax on overtime & tips: Key employer considerations and next steps

Held live Wednesday, November 19, 2025 | 9:30AM – 10:30AM CDT

Hosted by Leah Davis, CPA and Partner at Abdo LLP, and Brandon Fitzsimmons, Shareholder Attorney at Flaherty & Hood.

Ideal for all Employers, Payroll Managers, HR Directors, and Finance Leaders responsible for compliance and wage reporting.

The One Big Beautiful Bill Act (OBBBA) is in effect now, creating mandatory, retroactive tracking and reporting requirements that have the potential to reshape your entire payroll and employment ecosystem. This one-hour webinar, focused primarily on the overtime component of the bill, moves beyond high-level regulatory overviews to give you insights into the real operational impacts and W-2 reporting considerations you’ll need to understand to ensure compliance, address employee tax filing needs, and prevent painful year-end adjustments.

• Qualified Deductible Overtime and Tip Reporting: Learn more about the specifics of payroll and W2 reporting for the current 2025 and upcoming 2026 tax years, including guidance on the “reasonable method” of approximation permitted by the IRS for the 2025 transition year.
• Overtime Tracking Overhaul: Understand the nuances and challenges related to determining and tracking the allowable amount of deductible FLSA-regulated overtime. We’ll detail what this distinction means for your:  
  • Timekeeping systems, employee trainings, and how to unbundle your pay codes. 
  • Collective Bargaining Agreements (CBAs) and the complex implications of non-FLSA regulated but contractually required “overtime”. 
  • Comp Time Accruals and how accrual and use be affected by the new rules.
• Tipped Employee High-Level Overview: A concise, high-impact breakdown of the “no tax on tips” deduction and applicable reporting requirements for tips earned in eligible occupations. 
• Mitigating Risk: Identify the specific front-line operational and union negotiation implications created by the new law and implement best practices to reduce your organization’s compliance risk.

To access the recording, click here.