News & Analysis as of

Internal Revenue Service Reporting Requirements Employer Responsibilities

The United States Internal Revenue Service is a bureau of the United States Department of the Treasury. The IRS is charged with collecting revenue and enforcing the Internal Revenue Code.  
Lowndes

One Big Beautiful Bill Act: Major Tax & Benefit Changes Ahead for Employers in 2026

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On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act (OBBBA) into law. While the legislation addresses broad economic and social issues, several provisions stand out for employers. From enhanced tax...more

Stoel Rives LLP

Highlights of the “No Tax on Overtime” Provision of the OBBBA

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New deduction - - Effective for 2025 (retroactive to January 1, 2025) through 2028, a deduction is allowed for qualified overtime compensation received during the taxable year...more

Whiteford

Client Alert: How the “One Big Beautiful Bill Act” Impacts Employers, Employees and Contractors

Whiteford on

The recently enacted One Big Beautiful Bill Act (the “Act”) introduces several significant amendments to the Internal Revenue Code (“IRC”) that directly affect U.S. employers and employees. Key provisions—particularly the...more

Littler

IRS Publishes Draft Revised Form W-2 in Response to No Tax on Tips and No Tax on Overtime Reporting Requirements

Littler on

On July 4, 2025, President Trump signed into law the so-called “One Big Beautiful Bill Act.” The Act established new above-the-line tax deductions for “qualified tips” and “qualified overtime compensation.” To facilitate...more

McGlinchey Stafford

Tax Deductions on Tips and Overtime Under Trump Tax Plan

McGlinchey Stafford on

On July 4, 2024, President Trump signed the “Big Beautiful Bill,” which contains two provisions that provide federal income tax deductions on both tips and overtime compensation beginning January 1, 2025, through December 31,...more

Haynes Boone

The One Big Beautiful Act Explained for Employers: What It Means for Overtime, Tips and Taxes

Haynes Boone on

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law. It includes two federal tax deductions for a portion of an eligible worker’s tips and overtime earnings. Effective for 2025 through...more

Bricker Graydon LLP

Is My Health Plan Affordable Enough?

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As employers increasingly struggle with rising health plan costs, the IRS has provided some good news. Recently, the IRS announced that the Affordable Care Act (ACA) affordability threshold will increase to 9.96% of household...more

Akerman LLP - HR Defense

What Employers Need to Know About No Tax on Tips and No Tax on Overtime

The “One Big Beautiful Bill Act” (OBBBA), the sweeping, comprehensive budget legislation enacted on July 4, 2025, seeks to fulfill several key campaign promises of President Donald Trump. Among those promises, the OBBBA makes...more

McAfee & Taft

OBBB’s new tax deductions on tips and overtime impact employees and employers

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Earlier this month, President Trump signed the “One Big Beautiful Bill” (OBBB) into law, which contains two key provisions that are likely to be very popular with employees. Those provisions provide federal income tax...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

Kelley Drye & Warren LLP

Simplified Option for Correcting Certain Retirement Plan Failures

Earlier this year, the U.S. Department of Labor (“DOL”) amended its Voluntary Fiduciary Compliance Program (“VFCP”) to provide retirement plan sponsors with a simplified option for correcting certain specified prohibited...more

Woodruff Sawyer

IRS Issues Affordability Percentage Adjustment for 2026

Woodruff Sawyer on

The Internal Revenue Service (IRS) has released Rev. Proc. 2025-25, which contains the inflation adjusted amounts for 2026 used to determine whether employer-sponsored coverage is “affordable” for purposes of the Affordable...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Solo 401(k) Really Means Solo—So Don’t Be Surprised When You’re on Your Own

Let’s be honest: the Solo 401(k) is one of the great marketing wins of the retirement plan industry. It sounds easy. It sounds empowering. It sounds like freedom—no employees, no complex administration, no fuss. But let me...more

FordHarrison

How the One Big Beautiful Bill Act May Impact Employers

FordHarrison on

On July 4, 2025, President Trump signed into law a bill entitled “An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14,” generally referred to as the One Big Beautiful Bill Act (the OBBBA). The OBBBA...more

Blank Rome LLP

What the New Tax Treatment of Overtime Pay and Tips Means to Employers

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The One Big Beautiful Bill (“OBBB”), signed by President Trump on July 4, 2025, allows workers (subject to dollar and income limitations) to deduct, on their U.S. federal income tax return, overtime payments and tips that...more

Seyfarth Shaw LLP

1 Big Bill + 2 New Deductions = Multiple New Challenges

Seyfarth Shaw LLP on

The freshly enacted “One Big Beautiful Bill” introduces two above-the-line tax deductions for tips and overtime wages. While these deductions offer potential savings for eligible workers, they come with new compliance...more

Conn Maciel Carey LLP

The One Big Beautiful Bill’s Overtime and Tax Provisions – Employer Consequences

Conn Maciel Carey LLP on

As we await the House of Representatives’ vote on the One Big Beautiful Bill, let’s highlight two key provisions that may soon impact employers and employees alike. The Senate bill under consideration before the House of...more

Amundsen Davis LLC

Illinois Minimum Wage 2025 Update – July 1, 2025 Increases to Chicago and Cook County Minimum Wages; January 1, 2025 Increase to...

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On January 1, 2025, we saw the Illinois minimum wage increase from $14.00 to $15.00 per hour. The City of Chicago is increasing its set minimum wage on July 1, 2025 for employers with four (4) or more employees. Cook...more

Bass, Berry & Sims PLC

IRS Guidance Regarding ACA Employer Information Reporting Requirements

Bass, Berry & Sims PLC on

As announced in our previous HR Law Talk blog post, the Paperwork Burden Reduction Act (PBRA) made important changes to employers’ responsibilities to furnish information to employees under the Affordable Care Act (ACA). As...more

Jackson Lewis P.C.

The Guidance Has Arrived! More Information from the IRS on ACA Forms 1095-B and 1095-C

Jackson Lewis P.C. on

Takeaways- Employers may post a notice on their website instead of automatically furnishing Forms 1095-B and 1095-C to all full-time employees. The first due date for such a notice is March 3 for 2024 forms, and the notice...more

Amundsen Davis LLC

IRS Issues Guidance on Alternative Distribution Method for Form 1095-C

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As part of the Paperwork Burden Reduction Act, signed into law on December 23, 2024, Internal Revenue Code (IRC) sections 6055(c) and 6056(c) were amended to allow the use of the alternative method for distributing Forms...more

Pillsbury Winthrop Shaw Pittman LLP

IRS Eases Form 1095-C Burden for Employers

President Biden recently signed two new laws that significantly reduce the ACA compliance burden for employers by streamlining Form 1095 reporting and minimizing penalties for failure to file and distribute Form 1095s to...more

Polsinelli

Complying with the ACA Disclosure Requirements Just Got a Whole Lot Easier!

Polsinelli on

New legislation liberalizing certain disclosure requirements under the Affordable Care Act (“ACA”) was passed at the end of 2024.  Effective for 2024 reporting, mailing a paper copy of Forms 1095-C/1095-B is no longer...more

Mitratech Holdings, Inc

ACA Reporting Deadlines for 2025: What You Need to Know

Understanding reporting rules for the Affordable Care Act (ACA) is more than a best practice. It’s a legal imperative. If your reports aren’t timely and accurate, you face penalties....more

Fisher Phillips

5 New ACA Reporting and Penalty Rules Employers Will Be Happy About

Fisher Phillips on

Two new federal laws bring good news to employers subject to reporting and other requirements under the Patient Protection and Affordable Care Act (ACA). President Biden approved laws in December that not only ease the...more

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