Illustration of the 2026 tips and overtime deduction — a tipped receipt, an overtime time card, and a calculator
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2026 Tips and Overtime Deduction: Employer Guide

BySW Accounting admin

What are the new 2026 tips and overtime deduction rules for employers? For tax years 2025 through 2028, employees can deduct up to $25,000 of qualified tips and up to $12,500 of qualified overtime pay ($25,000 for joint filers). The tips and overtime deduction is claimed on the employee’s return, but it creates new payroll…

Illustration of DOL FLSA opinion letters — a wall clock, time card, and paycheck representing wage-and-hour rules

DOL FLSA Opinion Letters 2026: 4 Wage-and-Hour Answers

BySW Accounting admin

What do the new DOL opinion letters say about wage-and-hour rules? On May 28, 2026, the Department of Labor issued four FLSA opinion letters answering when meal breaks and clock-in lines must be paid, whether a salaried exempt employee can take a second hourly role, and how percentage-of-earnings bonuses satisfy overtime rules. If you run…