Surgent's Taxation of Tips and Overtime Under OBBBA
2.00 Credits
Member Price $119
Non-Member Price $144
Overview
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.
Highlights
- $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
Prerequisites
None
Designed For
All accounting and finance practitioners
Objectives
- Expertly advise clients regarding the latest on taxation of tips and overtime emanating from OBBBA
Preparation
None
Leader(s):
Leader Bios
Michael Tucker, Surgent McCoy CPE, LLC
Michael J. Tucker, Ph.D, LL.M, J.D., CPA, is a professor of Accounting at Quinnipiac University in Hamden, Conn., and is a consultant for T.M. Byxbee Company, P.C., Certified Public Accountants. Tucker handles a wide variety of client transactions, including mergers and acquisitions, entity formations and dissolutions, and distributions to owners/shareholders/partners. In addition, he is the author of over 100 articles and books dealing with various tax topics, a frequent lecturer at conferences and seminars throughout the country, and is co-host for the CPA Report, a monthly television and video series dealing with the latest tax topics.
Non-Member Price $144
Member Price $119