No Tax on Tips and Overtime

August 13, 2025

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) became law and with it provisions for “No Tax on Tips” and “No Tax on Overtime” were enacted. Below is a summary of these provisions. It is anticipated that further guidance will be issued by the Internal Revenue Service (“IRS”) in the coming months. As such guidance becomes available, COMD will provide our clients with updates.