The “One Big Beautiful Bill Act” (P.L. 119-21), signed into law on July 4, 2025, introduces two major tax deductions for workers: one for tips and another for overtime pay. While the provisions are designed to boost take-home pay for millions of Americans, they also create new compliance burdens for employers-especially in hospitality, retail, and healthcare.
Gillian Florentine, a director with Baker Tilly’s Human Resources consulting team, says employers should take action now to prepare for the changes, which are retroactive to January 1.
To dig deeper, visit the original article on the Thomson Reuters blog.