Understanding “No Tax on Overtime” Current IRS Guidance for HR and Payroll (2025 Filing Season
The “no tax on overtime” provision doesn’t eliminate payroll withholding—it creates a personal income tax deduction your employees claim on their returns for the overtime premium portion only. You’ll continue withholding payroll taxes as usual, and FLSA compliance requirements remain unchanged. For 2025, the IRS offers shift relief with no mandatory W-2 reporting, though you […]
The Hidden Payroll Trap: What Every Employer Must Know About Moving Expense Reimbursements in 2025
Since 2018’s Tax Cuts and Jobs Act, you can’t treat moving expense reimbursements as non-taxable business expenses anymore. Every dollar you reimburse must be reported as taxable wages on your employee’s W-2, requiring proper federal, state, and FICA tax withholding. You’ll face IRS penalties if you misclassify these payments or fail to integrate them into […]
When Must Employers Use E-Verify
When Must Employers Use E-Verify? You must use E-Verify when you have federal contracts worth $150,000 or more, especially if there’s a FAR E-Verify clause. Certain states, like Alabama and Arizona, require compliance based on their laws. If you’re hiring in industries prone to unauthorized workers, E-Verify can help reduce risks. Additionally, being proactive with […]
