What Employers Need to Know About the No Tax on Tips Act and OBBBA
On Friday, July 5, 2025, the “One Big Beautiful Bill” Act (“OBBBA”) was officially signed into law, which includes provisions for exempting tips and overtime from taxes, effective through December 31, 2028. Under the new law, employees who customarily and regularly receive tips can deduct up to $25,000 in tips from their income, subject to…