New Tip and Overtime Deductions: What Employers Need to Know

Varnum invites you to an upcoming complimentary webinar in which attorney Carolyn M.H. Sullivan will walk through the significant new changes affecting tip and overtime pay deductions under H.R. 1, formerly known as the One Big Beautiful Bill Act. These provisions impact both employees and employers beginning in 2025, and now is the ideal time to prepare.

Together, we will cover:

• Overview of the new deductions for tip and overtime wages
• Review of Employer recordkeeping obligations for 2026
• Employer responsibilities related to documentation, reporting, and payroll processes
• Managing employee expectations about deductions and refunds of withheld federal taxes
• Anticipated IRS guidance and practical steps to adapt your compliance approach