New OBBBA Tip and Overtime Tax Deductions - What Hospitality Employers Should Know

The One Big Beautiful Bill Act (“OBBBA”), enacted in July 2025, temporarily eliminates taxes on qualified overtime and qualified tips through 2028. This new law is intended to reduce taxable income for hourly and tipped employees by allowing up to a $12,500 (single) or $25,000 (married filing jointly) deduction for qualified overtime compensation and up to a $25,000 deduction for qualified tip income.... By: Stokes Wagner