No tax on overtime + no tax on tips = big W-4 headaches for employers


“Zero tax on tips” and “zero tax on overtime” sound simple, but employees are hearing an incomplete story. While the One Big Beautiful Bill Act allows deductions related to tips and overtime, those wages are still subject to income tax and FICA withholding—creating widespread confusion for employees and extra pressure on Payroll.

As employees look to adjust their W-4s to account for these deductions, many who haven’t updated the form since its 2020 redesign are turning to Payroll with questions about how it works and why taxes are still being withheld. The W-4 has become a high-risk area for costly mistakes, especially as IRS guidance continues to evolve and more employees end up underwithheld—or with nothing withheld at all.

Even if payroll is outsourced, employers remain fully responsible for errors, and the IRS has made clear it will not return to the simpler W-4 of the past.

On February 25, join payroll and tax compliance expert Alice Gilman for a practical webinar on how to navigate today’s W-4, avoid common pitfalls and stay compliant amid changing rules.

  • W-4 updates and compliance. Stay current on the latest W-4 process, including electronic forms, and quickly bring your company into compliance.
  • What to tell employees who earn tips or overtime. Give employees who earn tips or overtime the tools to estimate their deductions by themselves.
  • Guidance for side gigs and worksheets. Learn how employees with multiple jobs should complete the W-4 form, and understand the critical role of W-4 worksheets in accurate withholding.
  • Effective employee communication. Develop a plan to guide employees —especially new hires—through the W-4 form to prevent costly mistakes.
  • Managing outdated W-4s. Discover strategies for handling employees who don’t update their W-4s, including IRS solutions for different forms and methods.
  • Rejecting invalid W-4s. Identify when to reject a W-4 and how to manage IRS letters that void an employee’s form.
  • Ensuring withholding accuracy. Follow best practices for verifying your withholding processes, with step-by-step IRS guidance.
  • Supplemental pay withholding. Master the rules for withholding on various types of supplemental pay.
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Everyone who signs up will receive a copy of Payroll Checklist, a step-by-step compliance guide detailing every deadline and action item required for every pay period, month and calendar quarter of the year. Use the checklist as a guide to total payroll compliance for the rest of the year.

SHRM Recertification Provider

Business Management Daily is recognized by SHRM to offer Professional Development Credits (PDC) for SHRM-CP® or SHRM-SCP® recertification activities.

HRCI Recertification Provider

This Program has been pre-approved for 1.25 HR (General) credit hours toward aPHR®, aPHRi™, PHR®, PHRca®, SPHR®, GPHR®, PHRi™ and SPHRi™ recertification through HR Certification Institute® (HRCI®).

If this webinar fails to meet your needs in any way, we will refund 100% of your tuition – every penny you paid – but your course materials and registration bonus will be yours to keep. No hassles, no questions asked.