OT new rules

Hi, TCarr. I understand that managing changes to payroll and overtime in QuickBooks Desktop (QBDT) due to the newly passed "One Big Beautiful Bill Act" can be overwhelming. Let me share with you the key updates to get started.
 

The IRS has stated that there will be no changes to federal payroll withholding tables or tax forms for the 2025 tax year concerning this legislation. QBDT Payroll will continue calculating taxes, including those applicable to tips and overtime, throughout the entirety of the 2025 tax year. Also, the IRS has announced that it will not penalize companies for being unable to provide employees with documents that detail their 2025 qualified tips or overtime amounts.

For workers, the bill introduces potential tax deductions for tips and overtime that can be claimed during the tax filing process for 2025. However, it does not directly impact payroll processing or paycheck calculations.

As the IRS finalizes the details on how employees will report these deductions, QuickBooks will monitor the updates and send email notifications to ensure customers stay informed of any changes.

For detailed information, check out this QuickBooks blog: Details on the One Big Beautiful Bill Act and how it affects payroll.

Let me know if you have any additional questions.