The new federal “no tax on overtime” law may not mean what you think it does To start with, all of your overtime pay is not included “no tax on overtime” is a highly promoted part of. Enter the “no tax on overtime” provision, part of the broader one big beautiful bill (obbba), enacted into law on july 4, 2025 Your employer must pay you at the overtime rate for the extra hours you worked Use the department of labor’s overtime pay calculator to estimate how much overtime pay you may earn.
The complete guide to u.s Overtime laws, salary thresholds, and compliance strategies Learn how to calculate overtime and avoid legal penalties in 2025. In this article, we define overtime pay, explain how it functions under federal law and state laws, review different types of overtime work, and provide steps to calculate it using your regular rate of pay or hourly rate. Learn how the one big beautiful bill act could exempt overtime wages from federal income tax See who qualifies and how it impacts paychecks.
Many americans who work overtime will get a break on their taxes for the next few years — but it may not be as hefty as they think. Overtime pay ensures employees are fairly compensated for extra time on the job.
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