No Tax on Overtime in 2026: The Complete Employer Guide
“No tax on overtime” is a federal income-tax deduction, created by the One Big Beautiful Bill Act, that lets eligible workers deduct the premium portion of their FLSA overtime pay (the “half” of time-and-a-half) for tax years 2025 through 2028. It is capped at $12,500 for single filers and $25,000 for joint filers, and it […]
Bonus vs. Raise: The Tax and Retention Implications Employers Overlook
When you hand an employee a bonus or approve a raise, you probably think you’re making a straightforward financial decision. You’re not. Both choices carry hidden tax consequences, payroll ripple effects, and retention outcomes that most employers never see coming. The difference between these two compensation tools is far more complicated than it appears, and […]
Your Payroll System Needs These OBBBA Updates Before Q1 Closes
The One Big Beautiful Bill Act just changed how your payroll system needs to operate, and Q1 isn’t waiting for you to catch up. New deductions, updated FSA limits, and a brand-new W-2 code aren’t optional adjustments — they’re compliance requirements with real penalties attached. If you’re not sure whether your system’s already configured correctly, […]
