No Tax on Tips and Overtime
On July 4, 2025, President Trump signed the One Big Beautiful Bill Act bringing two landmark provisions into law—both effective retroactively for the 2025 tax year and expiring December 31, 2028. The “no tax on tips and overtime” policies offer meaningful tax relief to many service and hourly workers. But employers shoulder the bulk of the implementation burden—payroll updates, compliance, training, and policy adjustments. Done right, this could translate to a powerful retention tool. Done sloppily, it could lead to compliance headaches.