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 there payroll to pay them 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](https://mfobucket.nyc3.digitaloceanspaces.com/Tips_and_OT_09b4f6fb38.pdf) 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. For most of our clients that