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Income Taxes › Payroll Taxes

Income taxes are taxes that are collected on the individual earnings of persons or entities. Depending on the jurisdiction, income taxes are calculated and collected in a variety of ways. Some tax systems collect... more +
Income taxes are taxes that are collected on the individual earnings of persons or entities. Depending on the jurisdiction, income taxes are calculated and collected in a variety of ways. Some tax systems collect income taxes based on a progressive scheme, while others may utilize a proportional or regressive framework. less -
Womble Bond Dickinson

Unlocking Savings: New Tax Breaks for Overtime and Tips - What Employers Need to Know

Womble Bond Dickinson on

In a sweeping move set to reshape employee paychecks, the newly enacted One Big Beautiful Bill Act (OBBBA) introduces two significant federal tax deductions for hourly workers: one for overtime pay and another for tip income....more

Whiteford

Employment Law Update: New Overtime Tax Law Increases Employer Recordkeeping Obligation

Whiteford on

The Administration’s “Big Beautiful Bill” includes a new overtime tax provision, broadly described as “No Tax on Overtime.” More accurately, the Bill allows an employee tax deduction of a portion of overtime payments, up to a...more

Hanson Bridgett

IRS Clarifies Income Tax Withholding and Reporting Obligations for Uncashed Retirement Checks

Hanson Bridgett on

When an employer (or the proper withholding agent, like a plan administrator) issues a retirement benefit, there is generally an obligation to withhold income tax on the payment and to report the payment on Form 1099-R....more

Saul Ewing LLP

New Provision Provides Above-The-Line Deduction for Overtime Pay

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The new tax legislation, part of the "One Big Beautiful Bill", includes a temporary tax break for overtime pay, allowing eligible workers to deduct a portion of their overtime earnings from their federal income taxes. Section...more

Husch Blackwell LLP

Alabama Enacts 30-Day Exemption to Imposition of Individual Income Tax

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In the wake of the COVID-19 pandemic and increased remote work, multistate income tax and payroll tax withholding responsibilities have received heightened consideration nationwide. Employers keen on retaining and attracting...more

Amundsen Davis LLC

No Tax on Tips—But What About Overtime and Social Security?

Amundsen Davis LLC on

Earlier this year, many low-income taxpayers were elated to learn about the possibility that tipped wages could receive federal income tax relief under the No Tax On Tips Act. Under President Trump’s “One, Big Beautiful...more

Maynard Nexsen

Preparing for Potential Payroll Changes: What Employers Need to Know About the No Tax on Tips Act and OBBBA

Maynard Nexsen on

On May 20, 2025, the No Tax on Tips Act, a standalone bill that would effectively exempt up to $25,000 in tips from federal income tax for certain workers, passed by unanimous consent in the Senate. Shortly thereafter, on May...more

Fox Rothschild LLP

House and Senate Overtime and Tip Tax Proposals: What Employers Need to Know

Fox Rothschild LLP on

Competing House and Senate bills have the potential to reshape how the IRS taxes tips and overtime wages. The Senate recently passed the “No Tax on Tips Act” while the House budget reconciliation bill proposes deductions for...more

Stokes Wagner

“No Tax on Tips Act” Passes U.S. Senate With Unanimous Consent

Stokes Wagner on

On May 20, 2025, the U.S. Senate passed the “No Tax on Tips Act” with unanimous consent. The bill now heads to the U.S. House of Representatives. If passed, the “No Tax on Tips Act” would allow employees in tipped...more

Amundsen Davis LLC

No Tax on Tips Act: How Taxpayers Can Prepare

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Tipping has been part of the modern-day American restaurant experience for decades. Like most forms of income, these tips are taxable and subject to income tax. But what if this income was free from income tax liability?...more

Ankura

The Critical Importance of Tax Due Diligence in Modern Business Transactions

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In today's complex and ever-evolving business landscape, tax due diligence has emerged as a critical component of financial analysis and risk management in mergers, acquisitions, and other significant business transactions....more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Alabama Amends State Income Tax Exemption for Overtime Payments

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In November 2023, Alabama enacted a law exempting, from Alabama state income tax, amounts received by full-time hourly wage-paid employees as compensation for overtime worked. On May 17, 2024, Alabama amended the Overtime...more

BCLP

City of St. Louis Making Earnings and Payroll Tax Refunds for Work From Home Compensation

BCLP on

The City of St. Louis has reached an agreement with the plaintiffs in Boles v. City of St. Louis, Case Number ED 111495 in which the Collector of Revenue of the City has agreed to process refunds for Earnings Taxes paid by or...more

Foster Garvey PC

A Journey Through Subchapter S / A Review of The Not So Obvious & The Many Traps That Exist For The Unwary: Part VII –...

Foster Garvey PC on

In the S corporation arena, tax advisors generally do not focus much attention on unreasonable compensation. As we delve into the issue in this Part VII of my multi-part series on Subchapter S, it will become apparent that...more

Amundsen Davis LLC

[Webinar] Managing New Legal Mandates for Multi-State Employers - June 11th, 10:00 am CT

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It’s not usual for companies to have employees working in multiple states, especially if they hire remote workers. However, managing a workforce that is spread out over multiple locations can be challenging. Join Sara...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Ohio Supreme Court Rules That Municipalities Could Temporarily Collect Income Tax From Remote Workers During Pandemic

Ogletree, Deakins, Nash, Smoak & Stewart,... on

On February 14, 2024, in Schaad v. Alder, the Supreme Court of Ohio upheld the constitutionality of a temporary Ohio law allowing municipalities where a principal place of business was located to collect income tax from...more

BakerHostetler

Ohio Supreme Court Issues Important Municipal Income Tax Decision on Remote Work

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The Ohio Supreme Court issued its long-awaited decision in Schaad v. Alder, Slip Opinion No. 2024-Ohio-525, decided on February 14, 2024. ...more

Bowditch & Dewey

Update Your 2024 Tax Withholding to Avoid Year-End Surprises

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Now that the 2023 tax filing season is underway, many taxpayers are having an unpleasant surprise when they file their tax return this year and find out they are getting a much smaller refund than they were expecting, or...more

Bennett Jones LLP

Incentivizing Employees: Avoiding a Salary Deferral Arrangement

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Incentivizing employees is a critical component of most business strategies. Employers may implement arrangements for deferred cash bonuses, often subject to the satisfaction of certain criteria. From a tax perspective, the...more

Nutter McClennen & Fish LLP

Estate and Income Tax Provisions in Pending Massachusetts Tax Relief Package

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The Massachusetts House and Senate voted in favor of a Massachusetts tax relief bill. The legislation is now on Governor Maura Healey’s desk, and she has until October 8th to act. More than two decades have passed since the...more

Harris Beach Murtha PLLC

Massachusetts Unveils New Tax Relief

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On September 26, 2023, Massachusetts leaders announced major tax legislation that includes estate tax relief, closing a loophole around the newly implemented millionaire’s tax, short-term capital gains tax cuts and more. It...more

Stoel Rives LLP

City of Salem, Oregon Enacts New Payroll Tax

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The Salem City Council on July 11, 2023, approved Ordinance Bill No. 12-23, which imposes a new payroll and self-employment tax to fund community safety services. The ordinance imposes tax at a rate of 0.814 percent of an...more

Foley & Lardner LLP

Cos. Should Heed IRS Warnings About Employee Tax Credit

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For most businesses, turning the calendar to 2023 meant putting the pandemic and any of its tax-related effects further in the rearview mirror. One notable exception, however, is the employee retention credit, or ERC,...more

Pillsbury Winthrop Shaw Pittman LLP

Don’t Let Bank Uncertainty Delay Payroll: Considerations for Employers

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With bank uncertainty making headlines, we answer employers’ most frequently asked questions about the consequences of payroll delays, strategies for mitigating risk and more. ...more

Morgan Lewis

Uk to Repeal Off-payroll Working (Ir35) Rules

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The UK government’s “Growth Plan” (or “mini-budget”), delivered on 23 September, announced that the recent changes to the United Kingdom’s off-payroll working rules will be repealed with effect from April 2023....more

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