Sage 100

The latest word from the IRS is that there will be NO CHANGES to the 2025 W2 to account for the tip and OT changes. They advise employers to find some other way to get the information to their employees BUT there will be no penalties for non-compliance. I have a client who asked for something with a write-up included for the employees and came up with the attached using the Earnings Report in Payroll - YMMV. Client had only included the top portion, but I felt it was important the employees know that 1) it's only the premium part of their OT, 2) it's only for 4 years, 3) it's dependent on FLSA criteria so you may not even qualify, and 4) you are still going to pay FICA and Medicare taxes on those wages.

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Beth Bowers
Dog Mom, first and foremost. The rest is all just necessary to keep the dogs in biscuits.
(269) 358-0989
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@Beth Bowers, I busted out laughing when I saw your subject line!  I received the attached from an AICPA post on 11/6/25.

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[Michele] [Herzog] [CPA,CITP, CGMA]
[Overland Park] [KS]
[816-520-1365]
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Treasury, IRS provide penalty relief for tax year 2025 for information reporting on tips and overtime under the One, Big, Beautiful Bill

Irs		remove preview
Treasury, IRS provide penalty relief for tax year 2025 for information reporting on tips and overtime under the One, Big, Beautiful Bill IR-2025-110, Nov. 5, 2025 - The Department of the Treasury and the IRS today issued guidance providing penalty relief to employers and other payors for tax year 2025 regarding new information reporting requirements for cash tips and qualified overtime compensation under the One, Big, Beautiful Bill. View this on Irs >

 

for those that like to follow the IRS page when requested for backup. 

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Madeline Stefanou
RKL eSolutions, LLC
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I shy away from giving the appearance of offering tax or accounting advice. I've been burned once and said never again... this was many years ago but many clients wanted to avoid paying their CPA and instead used me as their unpaid financial advisor. It only takes one IRS notice with penalties to make you "nope" out of this line of advice.

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Wayne Schulz
wayne@s-consult.com
Schulz Consulting
(860) 516-8990
Connecticut
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Good point @Wayne Schulz  Thanks for the reminder to not get lured down that path.

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Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Chauffeur, Chef, and Personal Assistant to Sprinkles
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Original Message:
Sent: 11-07-2025 09:40
From: Wayne Schulz
Subject: Big Ass Bill or whatever it's called - W2 changes

I shy away from giving the appearance of offering tax or accounting advice. I've been burned once and said never again... this was many years ago but many clients wanted to avoid paying their CPA and instead used me as their unpaid financial advisor. It only takes one IRS notice with penalties to make you "nope" out of this line of advice.

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Wayne Schulz
wayne@s-consult.com
Schulz Consulting
(860) 516-8990
Connecticut
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