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What Employers Need to Know About the New “No Tax” on Tips and Overtime

What Employers Need to Know About the New “No Tax” on Tips and Overtime

by Cory Carroll | May 12, 2026 | blog, Corporate Tax Services, Flow-Through Tax Services, Individual Tax

The new federal “no tax” rules for tips and overtime have attracted a great deal of attention, but the phrase can be misleading. These provisions do not make tips or overtime exempt from payroll tax, and they do not eliminate employer withholding or reporting...

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