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Tyler Forni is an associate in the Tax Department and a member of the Employee Benefits & Executive Compensation Group.

Despite the simple and catchy sound-bites, the “no tax on tips” and “no tax on overtime” opportunities under the One Big Beautiful Bill Act (the “OBBBA”) have limits and require administration by both employers and employees. Most significantly, the tax savings are in the form of deductions, rather than exclusions, which means that tips and overtime are still subject to FICA and other employment taxes