The recently passed One Big Beautiful Bill Act introduces an important change for employers: the overtime “half-time” portion is no longer subject to federal income tax.
In this video, Claudia St. John, Founder & CEO of The Workplace Advisors, explains:
– What part of overtime pay is tax-exempt under the new law
– How employers must track and report overtime going forward
– The impact on W-2s and upcoming IRS guidance
– Steps you should take now with your payroll provider and tax advisor
Employers will need to carefully track and report the additional half-time portion of overtime so employees can claim the appropriate deduction when filing taxes in 2026.
At The Workplace Advisors, we’re here to help you navigate these changes with confidence. If you have questions, contact us at hello@theworkplaceadvisors.com
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Connect with us!
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E-mail:
claudia@theworkplaceadvisors.com
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Website:
http://www.theworkplaceadvisors.com
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LinkedIn:
https://www.linkedin.com/in/claudiastjohn/
https://www.linkedin.com/company/theworkplaceadvisors
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