A major change in federal tax law is reshaping how employees may treat overtime pay on their tax returns. The One Big Beautiful Bill Act, signed July 4, 2025, introduced “No Tax on Overtime”—a new federal income tax deduction for qualified overtime compensation for tax years 2025–2028.

For payroll teams, the headline is only the beginning. This rule introduces new operational questions around what counts as “qualified” overtime (it’s narrower than many people assume), how income phase-outs work, how to support accurate employee reporting, and what to plan for regarding W-2 reporting as guidance evolves.

In this implementation-focused session, Christine Stolpe will break down the new deduction, clarify eligibility and thresholds, and walk through practical steps payroll departments and service providers can take to prepare—without disruption at year-end.

Topics covered

·        What “No Tax on Overtime” actually means (and what it doesn’t)

·        Defining qualified overtime compensation and how it’s calculated under the law

·        Deduction limits and phase-outs (including key income thresholds)

·        How the deduction interacts with Social Security and Medicare withholding (and why “tax-free” is a misleading label)

·        Practical payroll readiness: earnings codes, tracking, documentation, and process updates

·        Year-end considerations and W-2 reporting planning, including current transition notes for 2025 and what to watch for next

·        Employee and leadership communications: setting expectations and reducing filing confusion

Benefits of attending

·        Understand who qualifies and how the overtime deduction is applied

·        Identify wage/income phase-out rules that impact eligibility

·        Learn what payroll must do now vs. what may change as reporting guidance develops

·        Build a clear communication plan to help employees use the benefit correctly

This timely webinar gives payroll professionals the clarity and tools to stay compliant, reduce employee confusion, and confidently operationalize one of the most impactful wage-related tax changes in recent years.