New federal law regarding no federal withholding tax on tips and overtime

Summary

A new federal law passed on July 4, 2025, provisioned no federal withholding tax on overtime wages and tips.

Description

  • A new federal bill passed on July 4, 2025, changes how overtime and tips are taxed
  • Federal withholding will remain the same through the end of 2025
  • We’re waiting for final IRS guidance on possible year-end reporting updates
  • For questions, contact your licensed tax advisor

Solution Properties

Solution ID
250710170729090
Last Modified Date
Thu Feb 12 00:55:07 UTC 2026
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