New Rules for Federal Tax Exemption on Overtime
The Big Beautiful Bill calls for federal tax exemption on overtime and caps the total deduction that can be claimed at $12,500 (or $25,000 for a joint return). Additionally, it allows the full deduction for individuals with adjusted gross incomes up to $150,000 ($300,000 for joint returns) and slowly reduces the allowable amount of deduction by $100 for every $1,000 of income over those thresholds.
The start date of the new rules is January 1, 2025. Will legislative updates included any changes to comply with the new rules and if so when would they be released? How do we implement the change in Oracle CLOUD Payroll?