Why the new rules on overtime and tips credits don't help business owners

We have been getting a lot of calls from clients asking if we can change their payroll to pay themselves overtime or tips so they can earn tax free income under the new tax law. The short answer is no. We created this information sheet for our clients employees that may help business owners understand their own tax issues with it comes to overtime and tips under this new tax law. The deduction for overtime pay applies to overtime premiums required under federal law (FLSA). Most business owners will fail one of the tests to have overtime required including a weekly salary of under $1,128 and whose jobs are classified as executive, administrative, professional. The deduction for tips applies to those tips earned in a “traditionally tipped occupation.” The IRS will release an official list by October 2, 2025. Tax planning for a small business in New York comes with its fair share of challenges - but you don’t have to navigate them alone. We’ve put together a free PDF outlining the top 3 challenges every small business owner faces in the city - and practical ways to tackle them. Grab your copy today and get a head start on making your business thrive!

Why the new rules on overtime and tips credits don't help New York business owners

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