One Big Beautiful Bill Tip & Overtime Tracking
The OBBB introduced new federal individual income-tax deductions for qualified tips and FLSA-required overtime premium wages (IRS Notice 2025-69). Payroll Genie tracks and reports those potentially qualifying amounts per pay period so the employee has a clear record when they file their federal income tax return. Payroll Genie does notchange payroll taxable wages, withholding, FICA, paystubs, W-2, 1099, Form 941, Form 940, or filing outputs based on these tracked amounts — the actual deduction is determined at filing.
The OBBB Tracking Toolkit
Each capability below tracks and reports potentially qualifying amounts so the employee has a clear record at filing time. Payroll Genie does not change payroll taxable wages, withholding, FICA, paystubs, W-2, 1099, Form 941, Form 940, or filing outputs based on these tracked amounts.
Qualified Tip Income Tracking
Tracks up to $25,000 in potentially qualifying tip income per employee per year, reported against the OBBB annual cap. The actual federal income tax deduction is claimed on the employee's individual federal income tax return; payroll taxable wages and FICA are unchanged.
FLSA Overtime Premium Tracking
Tracks up to $12,500 of the FLSA-required overtime premium (the 0.5x portion above the regular rate) per return, reported against the OBBB annual cap. State-only, employer-policy, and voluntary overtime may not qualify; the actual deduction is claimed at filing.
FICA Tip Credit Estimator (Form 8846)
Estimates the employer FICA Tip Credit on tips above minimum wage so an accountant can complete Form 8846 at filing time. Payroll Genie does not file Form 8846 on your behalf.
Year-to-Date Cap Tracking
Tracks year-to-date tip and overtime amounts against the annual caps so the report you hand to your employees at filing time is accurate.
Income Phase-Out Tracking
Tracks OBBB income thresholds and phase-outs per employee based on the current projected annual income. The actual phase-out is determined on the individual's federal income tax return.
State Conformity Status
Reports which states have adopted the federal OBBB deduction, which have not, and which are undecided. Any state-level treatment is applied by the employee's state income tax filing — not by Payroll Genie's payroll output.
Advisory Reports (Not Filing)
Payroll Genie generates informational OBBB reports the employee can share with a tax professional at filing time. Payroll Genie does not change paystubs, W-2, 1099, Form 941, Form 940, or any filing output based on OBBB tracked amounts.
IRS Notice 2025-69 Aligned
OBBB tracking follows IRS Notice 2025-69. 2025 W-2 / 1099 forms are unchanged for separate OBBB reporting; 2026 forms are expected to provide separate reporting for qualified tips and qualified overtime.
Estimated Savings Visibility
See illustrative estimates of the potentially qualifying employee and employer amounts per pay period. Estimates only; actual federal tax treatment is determined when the employee files their federal income tax return.
How OBBB Tracking Works in Payroll Genie
You run payroll the way you always do. OBBB tracking runs alongside it (advisory only); the actual deduction is claimed at filing time.
Pay your team
Enter hours, tips, and overtime as usual — or let imports and time tracking do it for you. Payroll processing, withholding, FICA, and paystubs are unchanged by OBBB tracking.
We track OBBB
Potentially qualifying tip and FLSA overtime premium amounts, year-to-date caps, phase-out estimates, and state conformity status are tracked per pay period (advisory only).
Employees claim at filing
Each employee receives an OBBB report they can share with a tax professional at filing time. The actual federal income tax deduction is claimed on the individual's federal income tax return.
- OBBB tracking runs alongside payroll — no changes to paystub tax lines, withholding, FICA, W-2, 1099, Form 941, Form 940, or payroll funding
- Works for any business type, in any state
- Included with your plan — never an add-on fee
- Backed by real human support whenever you need it
See Your OBBB Estimates on Your First Run
Start a free trial and see illustrative estimates of the potentially qualifying tip and FLSA overtime premium amounts on every payroll (advisory only) — with a team that's here to help before, during, and long after you sign up. The actual federal income tax deduction is determined on each employee's federal income tax return; check with a tax professional before relying on the numbers.