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Surgent's Taxation of Tips and Overtime Under OBBBA

Thursday, Apr. 22
 9:00am - 11:00am

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2.00 Credits

Member Price $119.00

Non-Member Price $154.00

Overview

Arguably the most discussed topics to come out of the One Big Beautiful Bill Act (OBBBA) are the taxation of tips and overtime. Practitioners need to understand these provisions now, as they are effective for 2025 tax returns. This program provides practitioners with the background currently available to advise clients regarding these two important tax developments. Both employers and employees need to understand these timely changes to taxation.

Objectives

  • Expertly advise clients regarding the latest on taxation of tips and overtime emanating from OBBBA

Highlights

  • $12,500 deduction per individual for qualified overtime pay
  • Payment of overtime under the Fair Labor Standards Act (FLSA)
  • Calculating the “premium portion” of the extra half-time pay
  • Social Security and Medicare withholding
  • Employer furnishing the record of qualified overtime compensation to employees
  • Definition of a qualified tip
  • IRS list of traditionally-tipped occupations
  • $25,000 deduction for reported tips
  • The transition rule allowing employers to indicate the approximate amount designated as tips or overtime
  • State tax issues relating to tips and overtime
  • Changes in the W-2 reflecting new employer reporting responsibilities

Designed For

All accounting and finance practitioners

Prerequisites

None

Preparation

None

Notice

To access this program, log into your CTCPA account at https://www.ctcpas.org/my-cpe/upcoming and click on the orange "Launch Event" button.

Leader(s):

Leader Bios

Michael Tucker, Surgent McCoy CPE, LLC

MICHAEL J. TUCKER, CPA, MBA, J.D., LL.M., Ph.D. Mike is an employee of Surgent McCoy CPE, LLC. He authors materials and scripts for the monthly Edward Jones sponsored All Star Tax programs. Mike also writes materials for and conducts almost daily webinars on a variety of tax related topics. Mike works in the offices of T. M. Byxbee Company, CPAs, Mike’s duties at T.M. Byxbee Co. involve advising individual and business clients on a wide variety of transactional matters. Mike was formerly a professor of accounting at Quinnipiac University, in Hamden, CT, where he taught graduate and undergraduate law and tax programs. Mike received his J.D. from New York University and his LL.M. from Georgetown University Law Center. He is a CPA and received his Ph.D. from the University of Houston.

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Non-Member Price $154.00

Member Price $119.00