Compliance Stuff

Takeaway Read our blog post to learn the essentials you need to know about the “No Tax on Overtime” provision of the recent budget reconciliation bill. This exemption retroactively begins on Jan. 1, 2025, and will remain in place through 2028. Catch up on some quick definitions and learn about reporting and compliance topics employers will need to take into account in the coming years. A budget reconciliation bill known as the “One Big Beautiful Bill” was recently signed into law. This bill contains notable provisions, including one which  eliminates federal taxes on tips . Another part of this bill eliminates the taxes paid by employees on overtime hours worked. Let’s go over some information that will help you stay informed about this legislation. What is overtime pay and how is it currently taxed? Overtime pay is the premium that employers pay employees for working longer than a standard number of hours within a specified period. For most employees, overtime is considered to be ...

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...