{"id":6067,"date":"2026-02-17T16:02:01","date_gmt":"2026-02-17T22:02:01","guid":{"rendered":"https:\/\/www.employco.com\/blog\/?p=6067"},"modified":"2026-02-17T16:03:21","modified_gmt":"2026-02-17T22:03:21","slug":"hr-newsletter-obbba-taxes-new-overtime-faqs","status":"publish","type":"post","link":"https:\/\/www.employco.com\/blog\/2026\/02\/17\/hr-newsletter-obbba-taxes-new-overtime-faqs\/","title":{"rendered":"HR Newsletter: OBBBA & Taxes \u2013 New Overtime FAQs"},"content":{"rendered":"\n
\"HR<\/figure>\n\n\n\n
<\/div>\n\n\n\n

To help individuals better understand the new deductions for qualified overtime compensation under the One Big Beautiful Bill Act (OBBBA), the U.S. Department of the Treasury (Treasury) and the IRS issued<\/a> frequently asked questions (FAQs) on Jan. 23, 2026.<\/p>\n\n\n\n

On July 4, 2025, President Donald Trump signed a tax and spending bill commonly referred to as the OBBBA into law. Among other provisions, the OBBBA allows certain workers an above-the-line deduction for \u201cqualified tips\u201d and \u201cqualified overtime compensation\u201d for taxable years beginning after Dec. 31, 2024, and ending for taxable years beginning after Dec. 31, 2028.<\/p>\n\n\n\n\n\n\n\n

The FAQs, issued in Fact Sheet 2026-01, contain additional information about the deduction, provide resources for employees to assist them in determining whether they receive qualified overtime compensation under the Fair Labor Standards Act (FLSA), and contain helpful information regarding the differences in reporting requirements for tax years 2025 and 2026 through 2028. <\/p>\n\n\n\n

Click the following link to read the Treasury and IRS\u2019s FAQs<\/a>.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

To help individuals better understand the new deductions for qualified overtime compensation under the One Big Beautiful Bill Act (OBBBA), the U.S. Department of the Treasury (Treasury) and the IRS issued frequently asked questions (FAQs) on Jan. 23, 2026. On… <\/p>\n

Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31],"tags":[],"class_list":["post-6067","post","type-post","status-publish","format-standard","hentry","category-hr-newsletter"],"featured_image_src":null,"author_info":{"display_name":"Employco USA","author_link":"https:\/\/www.employco.com\/blog\/author\/employcousa\/"},"yoast_head":"\r\nHR Newsletter: OBBBA & Taxes \u2013 New Overtime FAQs - Employco Blog<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.employco.com\/blog\/2026\/02\/17\/hr-newsletter-obbba-taxes-new-overtime-faqs\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"HR Newsletter: OBBBA & Taxes \u2013 New Overtime FAQs - Employco Blog\" \/>\r\n<meta property=\"og:description\" content=\"To help individuals better understand the new deductions for qualified overtime compensation under the One Big Beautiful Bill Act (OBBBA), the U.S. Department of the Treasury (Treasury) and the IRS issued frequently asked questions (FAQs) on Jan. 23, 2026. 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However, under these laws, employees who work in an executive, administrative, or professional (EAP) capacity are exempt from overtime pay\u2026","rel":"","context":"In "HR Newsletter"","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5855,"url":"https:\/\/www.employco.com\/blog\/2025\/07\/16\/hr-newsletter-one-big-beautiful-bill-act-includes-changes-for-employee-benefits-tips-and-overtime\/","url_meta":{"origin":6067,"position":2},"title":"HR Newsletter: “One Big Beautiful Bill Act” Includes Changes for Employee Benefits, Tips, and Overtime","author":"Employco USA","date":"July 16, 2025","format":false,"excerpt":"On July 4, 2025, President Donald Trump signed a major tax and spending bill, commonly referred to as the \"One Big Beautiful Bill Act\" (OBBB Act), into law. 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