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Human Resource & Payroll

Navigating Payroll & Compliance Under the OBBB Act 2025: W-2, Overtime, Tips, and Tax Reporting Updates

Overview:

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, is the most expansive federal legislation impacting employers since the Tax Cuts and Jobs Act. This sweeping law includes retroactive provisions to January 1, 2025, and will have cascading compliance effects through 2028. At its core, the OBBBA creates complex new reporting, tax, and benefits obligations for employers—especially those in industries with tipped workers, hourly employees, or high-turnover staffing models.

This session will provide you with key items from Trump’s One Big Beautiful Bill and how it impacts you as an Employer. We will discuss how to begin preparation for tax reporting to comply with the provisions of the Bill. While many items are tax deductions that are above the line deductions on employee’s tax returns, Employers will be impacted to provide information to employees for these deductions. This will require payroll systems to be updated to provide this data on W-2’s. Overtime deductions are for premium pay only so systems may need updated to calculate the correct amount. State Overtime laws do not apply as it only applies to Overtime premium pay under the FLSA.

Areas covered in this Training:

· Federal Payroll Tax Changes
          o Overtime and Tip Income Deduction
· W-2 Reporting
         o Payroll System updates for W-2 reporting
         o New System requirements for Tip and Overtime reporting
         o 2025 requirements
· 1099-MISC and 1099-NEC Changes
· Policy and Workforce Implications
· Other Impacts
         o Boost employee retention & recruitment in Hospitality Industry
         o Stricter Work Requirements for Medicaid Eligibility
· State Payroll Compliance Considerations
· Dependent Care Flex Spending Increase
· Enhanced Dependent Care Assistance Program
· Employee Portions of the Bill

Why attend this Training:

This session will decode the law’s complex provisions and focus exclusively on what HR, Payroll, Legal, and Operations professionals must do now to comply, adapt, and benefit. You’ll learn to –
· Identify and apply the new federal payroll tax deductions for overtime and tip income under OBBB.
· Update payroll systems and processes to ensure compliance with new federal and state reporting requirements.
· Communicate effectively with employees regarding changes to payroll deductions, eligibility, and tax impacts.
· Navigate state-specific payroll compliance issues, including differences in state adoption of OBBB provisions.
· Revise internal payroll and overtime policies to reflect the new regulatory environment.
· Implement best practices for documenting, reporting, and auditing overtime and tip compensation.
· Prepare for downstream effects on labor costs, employee classification, and workforce management.

Suggested Attendees:

· Payroll Professionals
· Owners
· Accountants
· CFO
· Tax Professionals
· Bookkeepers

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