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Started By
Message
No tax on overtime
Posted on 11/5/25 at 10:58 am
Posted on 11/5/25 at 10:58 am
Just read up on this new law. You will just get to lower your gross income by the extra amount that raises the hourly rate to overtime rate. In other words if your regular hourly rate is $20 and you get time and half for overtime you will only get to deduct the $10 x overtime hours.
8
Posted on 11/5/25 at 11:07 am to tigger4ever
That was always my understanding.
Posted on 11/5/25 at 11:09 am to tigger4ever
Also only up to a certain amount like 20k
Posted on 11/5/25 at 11:22 am to tigger4ever
All times must also be reported in Standard Time.
Posted on 11/5/25 at 11:22 am to tigger4ever
quote:
In other words if your regular hourly rate is $20 and you get time and half for overtime you will only get to deduct the $10 x overtime hours.
So there is
quote:
No tax on overtime
Posted on 11/5/25 at 11:25 am to tigger4ever
Also, you must set this up with your HR everyone ahead of time
Posted on 11/5/25 at 11:29 am to tigger4ever
So if you get compensated at straight time for hours over 40 then there's no benefit?
Posted on 11/5/25 at 12:03 pm to tigerbacon
quote:
Also, you must set this up with your HR everyone ahead of time
Is there some kind of paperwork they need to set it up
Posted on 11/5/25 at 12:08 pm to burgeman
HR will have to list it separately on your W2.
Posted on 11/5/25 at 1:24 pm to tigger4ever
The most anyone can save is around $6,000. There's a $25,000 cap on OT for married filing jointly, and the benefit starts phasing out at $300k MAGI.
This post was edited on 11/5/25 at 1:26 pm
Posted on 11/5/25 at 2:18 pm to burgeman
yes there is
Posted on 11/5/25 at 11:29 pm to tigger4ever
I'm curious how it will work out for employees of companies that count OT as anything above 8 hours in a day (rather than over 40 in a week). I guess it kind of depends on how the company lists it on their W2's.
Posted on 11/6/25 at 7:52 am to indytiger
one of the smartest things we ever did was put all hourly employees on salary with a 20% raise. Saved the company BIG dollars and simplified our cost accounting exponentially
employees liked it because they get paid whether they are working or not
employees liked it because they get paid whether they are working or not
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