Tax Talk with Josh Wykle – The Big Beautiful Bill & Overtime Deductions: What's the Tea in L&E?

Update on November 6, 2025:

The IRS issued Notice 2025-62 this week, which provides relief from employer penalties for failure to follow the new reporting rules on tips and overtime pay.

“Treasury and IRS are aware that employers and other payors may not currently have the information required to be reported under the OBBB, or the systems or procedures in place to be able to correctly file,” the notice said.

The IRS had already stated that Forms W-2 and 1099 for tax year 2025 won’t be updated to account for the new tax laws on tips and overtime pay. Thus, this relief is limited to 2025 payments.

Original

In this episode of What’s the Tea in L&E, host Leah Stiegler welcomes Josh Wykle from Woods Rogers’ Tax team to unpack the tax twists and turns of the Big Beautiful Bill. They dive into how employers and employees can benefit from new overtime pay deductions—up to $12,500 individually and $25,000 jointly—and what documentation employers need to support those claims.

From tips and benefits to strategic pay audits, Leah and Josh explore how smart compensation planning can unlock real tax advantages. Whether you're an HR professional or a curious employee, this episode spills the tea on how to make your pay structure work for you come tax time.

What’s the Tea in L&E? is a video series focused on the latest trends and updates in Labor & Employment law.