Employers calculating overtime and tip income can breathe a sigh of relief if they make errors on their 2025 new information reporting requirements related to cash tips and qualified overtime compensation, or on providing the correct information on payee statements.
For example, if payors fail to provide a separate accounting of amounts reasonably designated as cash tips, or the total amounts of qualified overtime compensation, they will not be penalized in 2025, so long as they ultimately correct the return or statement.
For more details, please read the complete IRS Notice, click here.
