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No Tax on Tips or Overtime? What Employers Need to Know for 2025

Written by The Kaizen Team | | August 14, 2025
 

The “no tax on tips or overtime” change sounds straightforward—but it’s not. Brian Bride explains how the new deductions in the One Big Beautiful Bill are expected to work, what business owners should be doing now, and why 2025 is considered a transition year.

Key takeaways include:
 Who may qualify based on occupation
 Why W-2 coding matters more than ever
 What to expect from the IRS—and what’s still unclear

These deductions don’t apply automatically. To protect your business and help employees get the benefit, accurate payroll reporting is essential.