W-2 Wednesday: More on OBBBA’s W-2 reporting of tips/overtime
You must still complete your W-2s with the accurate information you’re otherwise required to report to escape penalties under IRC §§ 6721 and 6722.
Topic
Payroll Today
A collection of 139 issues
OBBBA: Maybe think twice before reporting overtime on employees’ 2025 W-2s
The general consensus after the IRS released its no-W-2-reporting transition relief for employees’ half-time overtime premiums is to ditch W-2, Box 14 reporting altogether. The consensus then went further and suggested not providing a separate accounting of their overtime pay, either. The reasons ar
Notes on the November IRIS working group meeting
IRIS, assurance testing, TCC maintenance and more.
Friday wrap: 2026 401(k) inflation adjustments, FUTA credit reductions and more
2026 inflation adjustments for 401(k)s, de minimis fringe benefits and more in our welcome-back-government wrap.
Cafeteria plans: Rules for changing benefit elections mid-plan year
Cafeteria plans offer employees a choice of benefits or cash. But this doesn’t mean they can go back for seconds. As a general rule, once employees lock in their pretax contributions for the next year, they can’t change them. While the IRS allows some exceptions to this general rule, it’s up to you
W-2 Wednesday: Reporting contributions into PFML funds
Earlier this year, the IRS sorted out the withholding rules for employers in states with paid family and medical leave laws. With withholding comes year-end reporting, which is the subject of today’s W-2 Wednesday.
Just in time for Veterans Day: A USERRA primer
USERRA guarantees employees returning from military service the right to return to their former jobs, or as nearly comparable a job as possible, with the same benefits. These reemployment rights apply if the cumulative length of military service doesn’t exceed five years.
Early access to 401(k) accounts: Not the best option for financially stressed employees
Financially stressed employees may be looking at the pot of money in their 401(k) accounts as a way out of debt. 401(k) plans may, but aren’t required to, allow employees to take hardship distributions or borrow against their plan assets. These probably aren’t the best strategies.
Friday wrap: Help for the math-challenged, Nationwide Tax Forums Seminars online, no more Direct File and more
Math and Taxpayer Help Act, state salary levels for exempt employees, Direct File sunsets and more to wrap up the week.
OBBBA: Transition relief for reporting tips and overtime
The IRS isn’t requiring you to report qualified tips, the tipped occupations or federal overtime on employees’ 2025 W-2s. You must still report Social Security tips in W-2, Box 7 and employees’ overtime as wages in W-2 Boxes 1–6.