Updated W-2 Tax Form: Tax Deductions on Qualified Tips and a Portion of Overtime Pay
UPDATE TO LAKE EFFECT’S AUGUST 27, 2025 BLOG ON THIS TOPIC In July 2025, the Trump Administration’s signature budget bill became law as Public Law 119-21. Of note for employers and employees, the bill permits tax deductions for “qualified tips” and a portion of overtime pay, as detailed in this IRS Fact Sheet. In August, […]
Tax Deductions on Qualified Tips and a Portion of Overtime Pay
In July 2025, the Trump Administration’s signature budget bill became law as Public Law 119-21.
IRS Issues Guidance on ARPA Tax Credits and COVID-19 Vaccinations
On April 21, 2021, the IRS and the US Treasury Department published a fact sheet on the tax credits available under American Rescue Plan Act (ARPA) to employers who provide paid leave to employees who get COVID-19 vaccinations. ARPA extends tax credits previously established under the Families First Coronavirus Response Act (FFCRA) to reimburse employers […]
