Desription

The U.S. Department of Labor (DOL) has announced a new round of Wage & Hour regulations, including changes to the overtime exemption threshold. What do these new regs mean for employers, and what can you do now to get ready? FLSA compliance continues to be a challenge for employers, and the proposed rules have everyone scrambling. How can you effectively navigate the new FLSA overtime rules and changes to ensure legal compliance, and mitigate risk?

Arguably the most discussed topics to come out of the One Big Beautiful Bill Act (OBBBA) are the taxation of tips and overtime. Practitioners need to understand these provisions now, as they are effective for 2025 tax returns. 

Learning Objectives:

This course defines the hours, payments, and issues that are considered in calculating overtime pay, and Specific items that are covered include:

• DOL's new rules on FLSA overtime exemptions: How to prepare
• Exempt vs nonexempt: Critical FLSA overtime compliance
• Latest FLSA enforcement rules, plus role states and local government play
• What you can do if your organization opposes the overtime changes

Information covered in the presentation:

• $12,500 deduction per individual for qualified overtime pay
• Payment of overtime under the Fair Labor Standards Act (FLSA)
• Calculating the “premium portion” of the extra half-time pay
• Social Security and Medicare withholding
• Employer furnishing the record of qualified overtime compensation to employees
• Definition of a qualified tip
• IRS list of traditionally-tipped occupations
• $25,000 deduction for reported tips
• The transition rule allowing employers to indicate the approximate amount designated as tips or overtime
• State tax issues relating to tips and overtime
• Changes in the W-2 reflecting new employer reporting responsibilities

Who Should Attend

• HR Managers
• Payroll Managers
• Budget Personnel
• HR and Payroll Compliance Managers
• Department Managers
• Fringe Benefit and Travel Staff