Written by Michael E. Brewer, Robin Samuel, Anne G. Batter and Ligeia Donis From Baker McKenzie on July 14, 2025
Click here to watch the video.
In brief
On July 4, 2025, President Trump signed the ‘One Big Beautiful Bill Act’ (OBBBA) into law, including provisions reducing federal income tax on qualified tips and overtime compensation.
For employers, the new law raises a host of practical questions:
- What do employers need to track and report?
- How will payroll systems need to adapt?
- What guidance can we expect as we move forward?
- How might state tax rules interact with these federal changes?
In this video chat, our Employment & Compensation and Tax partners unpack this significant development in federal tax policy.
