At Journey Payroll & HR, we believe in clear, transparent communication, especially when it comes to new legislation that directly impacts your business and your team.

With the introduction of the Big Beautiful Bill, headlines have circulated about “No Tax” on overtime and tip income. Unfortunately, many of these reports are incomplete or misleading. In this blog, we break down what this legislation means for you and your employees.

What “No Tax” Really Means

Despite the buzz, this legislation does not mean employees will stop seeing taxes deducted from their paychecks. Here’s the real story:

• Regular paycheck deductions remain unchanged: Employees will still see federal income tax, state income tax, Social Security, and Medicare withheld from each paycheck.
• The savings come at tax time: During annual tax filing, eligible employees can claim deductions on qualifying overtime and tip income. This can lower their taxable income and increase potential refunds.

Why This Matters

While the payroll process stays the same, these deductions could result in real financial benefits for employees at tax time. Understanding this distinction is crucial,  it helps manage expectations and prevents confusion on payday.

How Journey Payroll & HR Supports You

At Journey, we go beyond processing payroll.  We ensure your team understands these changes, so they’re informed, confident, and prepared to maximize their deductions when tax season arrives.

Stay tuned for Part two as we dive further into the details.