Webinar
OBBBA No Tax on Overtime: Payroll & Timekeeping Implications for Employers
Ideal for all Employers, Payroll Managers, HR Directors, and Finance Leaders responsible for compliance and wage reporting.
Leah Davis presented an overview of the payroll and timekeeping implications for employers related to the One Big Beautiful Bill Act (OB3) legislation, focusing on the tax breaks for overtime and tips. She explained that the tax credits for qualified overtime and tips are claimed on individual tax returns, not through payroll, and that only overtime required by the Fair Labor Standards Act (FLSA) qualifies for the deduction. Leah detailed the differences between FLSA overtime, premium pay, and specialty pay, emphasizing the importance of distinguishing between them for accurate W-2 reporting in 2026. She provided examples to illustrate how to calculate and report qualified overtime, noting that many employers may need to adjust their payroll systems and train employees to correctly categorize hours. The presentation also covered the need for employers to review their policies and ensure compliance with both federal and state overtime regulations.
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Please note: Operational and regulatory guidance is frequently changing and the information included here may be out of date—please consult the latest guidance and with your advisor before taking action.
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