Curtis Tatum, Esq., In-House Counsel and Senior Director of Federal Payroll Compliance at PayrollOrg, recently spoke with The Wall Street Journal about the One Big Beautiful Bill Act (OBBBA).
The “Who Gets ‘No Tax on Overtime’? It’s Messy” article on July 31 discusses fine print in the OBBBA and potential confusion for employers and workers trying to understand the tax deductions contained in the new law. One provision of OBBBA provides that individuals who receive qualified overtime compensation may deduct their overtime pay from their individual federal income tax return.
When speaking about early frustrations, Tatum said, “Employers will ultimately track two different numbers: overtime they pay and overtime qualifying for the deduction. It’s going to be a big learning curve.” Mary Hevener, partner at Morgan Lewis and tax counsel for PayrollOrg, said, “A lot of the overtime that people are receiving is not going to be subject to this tax benefit.”
PayrollOrg OBBBA Webinar
On August 14, PayrollOrg is offering a webinar to ensure payroll professionals are ready for OBBBA requirements. The Key OBBBA Payroll Impacts for 2025 and Beyond webinar will be presented 3:00 – 4:00 p.m. ET and is available on demand.
During this webinar, attendees will learn:
- What the provisions for no tax on tips and no tax on overtime means for payroll
- What is NOT expiring from the Tax Cuts and Jobs Act (TCJA) and what is now gone for good from the TCJA
- What is NEW and how those provisions will impact payroll processes
- How to prepare to ensure payroll operations remain compliant and efficient
Attendees will also be provided with information about helpful PayrollOrg resources and will hear how PayrollOrg’s Government Relations Task Force is communicating with the IRS about needed guidance for the payroll community.
Rayna Alexander, Esq., is Editor of Payroll Information Resources for PayrollOrg.
