Has intuit desktop payroll software service been revised to include the new no tax on overtime wages law?

Good evening, @TanyaS1.

How are you doing today? I hope all is well.

Right now, there’s no official date for when QuickBooks Desktop Payroll will be updated to reflect the new federal law signed in July 2025. This law, part of the One Big Beautiful Bill Act (OBBBA), allows eligible employees to exclude overtime and tip income from their federal taxable income when they file their tax returns, starting with the 2025 tax year.

For now, we recommend continuing to run regular payroll updates to ensure your software stays current with any new tax table changes.

In the meantime, it might be helpful to track overtime and tip wages separately to make tax filing easier for your employees when they claim the deduction on their 2025 returns.

Feel free to reach out anytime if you have questions or need a hand. Have a wonderful day!

There may be no update coming, but not sure. As I understand it, the way this will be implemented is that the employee will initially be taxed and then will conditionally get the tax back when they file their 1040.  If so, then no changes will be needed.

It will need to appear on their W2 so there is going to have to be some change so that it can be accumulated and properly place in whatever new field will be on the W2

Is there anymore updates available on the not taxes on overtime change?  Will there be a software update?

Thanks, 

Thank you for reaching out to the Community forum, @ILY2.

At this time, QuickBooks Desktop (QBDT) Payroll has no official update for the new federal law signed in July 2025, which allows eligible employees to exclude overtime and tip income from federal taxable income.

To help you obtain more details on what's included in the latest QuickBooks payroll update, check out this article: QBDT Payroll Update 22514.

Please stay tuned for announcements. If you have further questions, don’t hesitate to ask!

Good morning, wondering if there has been any update on QB Payroll and the OBBB for W2s.

We’re waiting for the IRS to release official instructions regarding the One Big Beautiful Bill (OBBB) Act, VC NCC.

Currently, we don’t have specific information regarding W-2 reporting rules aligned with OBBB but will ensure compliance with IRS guidelines for any payroll updates. For accurate and timely information, visit our  QuickBooks Blog post or check the IRS News releases.

If you need further clarification or have questions about how these changes will affect payroll or employee filings in QuickBooks, you can connect with our Live Support team by following these steps:

1. Open the Help menu and select QuickBooks Desktop Help.
2. Click on Contact Us.
3. Provide a brief summary of your issue, select Let's Talk, and choose your preferred method of communication.

For a detailed breakdown of the latest QuickBooks payroll update, you can also refer to this helpful article: QBDT Payroll Update 22514.

Don’t hesitate to reach out if you have additional questions-We’re always here to help!

Any updates on what QBO will be doing for payrolls that are automated in QBO and what they will be providing for overtime/wages to employees?

Hello, Elainie. I'll share the latest updates on payroll and overtime/wages in QuickBooks Online (QBO) in light of the newly passed "One Big Beautiful Bill Act".

The IRS has announced that there will be no changes to federal payroll withholding tables or tax forms for tax year 2025 related to this legislation. QBO payroll will continue to calculate taxes, including those on tips and overtime, as usual throughout this 2025 tax year.  

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

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

You can also check out our official QuickBooks resource hub for more detailed information about this topic: QuickBooks Blog.

Let me know if you have any additional questions.