Overtime Break Has Employers, Workers Seeking Guidance: BGOV Tax

Overtime Break Poses Questions

The Trump administration is expected to issue guidance on a tax break for some overtime earnings any day, but implementation isn’t as easy as making a campaign promise.

The GOP tax law passed in July gives certain workers a $12,500 break on the “half” of the “time-and-a-half” of federal overtime income in 2025 through 2028.

Business associations are lobbying the Treasury Department to ensure the burden for companies on implementation remains low, though payroll processors don’t expect employers to need new payroll systems.

The payroll world is preparing to track eligible overtime next year, and payroll ...