HR Unplugged · 2025-08-19 · 26 min
What does “No Tax on Overtime” mean for your employees? With the passing of the One Big Beautiful Bill (OB3), it’s easy to feel overwhelmed by what’s changing. Colleen Rynne , Senior Manager of Payroll Services Compliance at BambooHR, joins Vanessa Brulotte to help us make sense of the new provisions on tax deductions on overtime pay and tips. This is a must-listen for those in HR and payroll, or for anyone who wants to understand their tax returns going forward. You'll learn how to prep for year-end reporting, what qualifies for deductions, and how to talk to employees about what’s changing. Key takeaways: What “No Tax on Overtime” and “No Tax on Tips” really mean Why state taxes aren’t changing How to prepare for year-end reporting under OB3 Key topics: (00:00) Introducing Colleen Rynne (03:30) Who qualifies for deductions under OB3 (06:47) Why overtime deductions are more complex (09:57) What counts as a qualified tip (15:24) Year-end reporting and IRS guidance tips (21:50) FSA changes and permanent tax credits Key links: Read BambooHR’s blog, “What Are Payroll Taxes?
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