Friday wrap: IRS says nothing new for 2025 W-2s, tax-exempt orgs get some attention from the IRS (in a good way) and more
No OBBBA changes to 2025 W-2s, tax-exempt organizations, Business Resilience Toolkit and more to round out the week.
Topic
Payroll Today
A collection of 139 issues
IRS issues proposed regulations on IRC § 132’s line-of-business rules
The line-of-business rules related to employee discounts and no-additional-cost fringes under IRC § 132 preclude some generous fringes. The IRS has now proposed regulations to make technical changes to the line-of-business rules.
Preparing for open enrollment: Why do employees leave money in their health FSAs?
According to a December 2024 study by the Employee Benefit Research Institute, the amount employees leave in their health FSAs—and subsequently lose—averages $441. Employees don’t have to forfeit money if you adopt a grace period or rollover provision. Your plan will need to be amended, so now is a
OBBBA’s overtime premium: Payments included in the regular rate
It turns out the math involved in determining the One Big Beautiful Bill Act’s tax exclusion of overtime is the easy part. Figuring out what goes into the regular rate and what counts as working time are the tough ones.
DOJ releases more DEI guidance
The EEOC and the Department of Justice have been stamping out diversity, equity and inclusion programs in federal contractors’ and even private employers’ employment policies. New guidance from the DOJ for federal contractors clarifies how antidiscrimination laws apply to programs or initiatives inv
First-Friday-in-August wrap: Reporting tips/overtime on W-2s/W-3s is murky, fix 401(k) errors yourself and more
2025 W-2 and 2026 draft W-3, IRS and DOL self-corrections, new PTIN sign-in and more to usher in August.
Shelter from the storm
Once the president declares a natural disaster under the Stafford Act, FEMA and the IRS swing into action. You only need to look at our Friday Wraps to see the extent of disaster tax relief. But there’s a problem—red tape or even politics can often get in the way of immediate relief.
Preparing for open enrollment: Employees’ pretax choices
Last week, we reviewed some terms unique to group health insurance. There’s another consideration, also with its own lingo—add-on plans intended to help employees with their expenses. We’re talking about health flexible spending accounts and health savings accounts.
Communicating OBBBA’s tips/overtime changes to employees
Congress had the easy part. All it had to do was enact the One Big Beautiful Bill Act. Once it did, it left you with the responsibility of communicating the deductions for tips and federal overtime to employees. Here’s a template you may use to explain the salient details of these deductions.
Is PAID better the second time around?
Introduced in 2018, PAID was the Department of Labor’s alternative dispute-resolution program for resolving FLSA violations. It was canceled in 2021. Now it’s back on almost identical terms and expanded to include resolving FMLA violations. Get legal advice before deciding whether to participate.