Compliance Stuff

In a sweeping move set to reshape employee paychecks, the newly enacted One Big Beautiful Bill Act (OBBBA) introduces two significant federal tax deductions for hourly workers: one for overtime pay and another for tip income. Dubbed the “No Tax on Overtime” and “No Tax on Tips” provisions, these changes mean that from 2025 through 2028, many employees can exclude a portion of their overtime wages and tip earnings from federal taxable income . This offers a welcome tax break for workers across various sectors – from nurses and factory employees logging extra hours to servers and bartenders collecting tips. However, it also raises key wage-and-hour considerations for employers nationwide. Businesses of all kinds must navigate new payroll reporting requirements, adjust withholding practices, and consider broader impacts on compensation structures and labor strategies. This alert provides an overview of the OBBBA’s deductions, explains who is affected, and outlines best practices for emplo...

Takeaway Payroll compliance refers to how companies follow laws related to payroll and payroll taxes, such as the Fair Labor Standards Act. Businesses that fail to ensure compliance in payroll processes can find themselves subject to fines, audits, lawsuits and other penalties for violations. Organizations should rely on effective HR and payroll software to automate and streamline the tedious, manual processes that support payroll compliance. Every year brings the potential for new employment laws. And legislation that affects payroll is no exception. For employers, failing to ensure payroll compliance opens the door to issues like: costly noncompliance fines untimely audits and other penalties payroll mistakes Compliant payroll may seem like a tall order because it  is . At the same time, compliance is necessary to ensure the long-term success of a business and fair, equitable treatment for its employees. Let’s dive into how payroll compliance works, some of the common laws that i...