On August 6, 2026, the IRS issued Fact Sheet FS-2026-13, providing its most detailed guidance yet about the One Big Beautiful Bill Act’s (OBBBA) tax deduction for qualified overtime compensation. The new Fact Sheet identifies frequently asked questions and provides answers related to the deduction. For public agencies, the message is clear: 2026 payroll systems
Since our original post detailing the tracking and reporting requirements imposed by the One Big Beautiful Bill Act (“OBBBA”) for federal tax deduction of qualified overtime compensation (i.e., Fair Labor Standards Act (FLSA) overtime), the IRS has announced significant guidance for 2025 reporting.
For Tax Year 2025, Employers Are Not Required to Separately Report Qualified
The One Big Beautiful Bill Act (“OBBBA”), approved by Congress and signed into law by President Trump on July 4, 2025, created a new, federal overtime tax deduction that employees can claim on their federal tax returns. The tax deduction applies retroactively to the beginning of 2025 and will terminate on December 31, 2028, unless
The COVID-19 pandemic has changed the work environment in many ways, including a significant impact on employer-sponsored health benefits. The past year has resulted in changes to how frequently individuals visit the doctor (or do not visit the doctor), purchase eligible medical expenses, and need dependent care. In response to the pandemic, the IRS, Congress,