Question

Has intuit desktop payroll software service been revised to include the new no tax on overtime wages law?

Forum|Forum|1 year ago
July 31, 2025
27 replies
108 views

QuickBooks Desktop Payroll

Tori B

QuickBooks Team

Good evening, @TanyaS1.

How are you doing today? I hope all is well.

Right now, there’s no official date for when QuickBooks Desktop Payroll will be updated to reflect the new federal law signed in July 2025. This law, part of the One Big Beautiful Bill Act (OBBBA), allows eligible employees to exclude overtime and tip income from their federal taxable income when they file their tax returns, starting with the 2025 tax year.

For now, we recommend continuing to run regular payroll updates to ensure your software stays current with any new tax table changes.

In the meantime, it might be helpful to track overtime and tip wages separately to make tax filing easier for your employees when they claim the deduction on their 2025 returns.

Feel free to reach out anytime if you have questions or need a hand. Have a wonderful day!

B

Bacak73

Should there be any additional charges from QB to employers for this new OT tax situation?

D

Dandie_A

QuickBooks Team

Great question, Bacak73.

Let me clarify your concern regarding any additional charges related to the new overtime tax situation.

To answer your question, there will be no additional charges from QuickBooks related to payroll or the new overtime tax situation for 2025. Payroll tax calculations and reporting requirements will remain unchanged, so you’ll continue processing paychecks as you always have, with no impact on employer costs or paycheck deductions.

If you have any additional questions, don’t hesitate to reach out. We're here to help.

BigRedConsulting

Level 15

There may be no update coming, but not sure. As I understand it, the way this will be implemented is that the employee will initially be taxed and then will conditionally get the tax back when they file their 1040. If so, then no changes will be needed.

M

Maria2513

It will need to appear on their W2 so there is going to have to be some change so that it can be accumulated and properly place in whatever new field will be on the W2

I

ILY2

Is there anymore updates available on the not taxes on overtime change? Will there be a software update?

Thanks,

S

smileen

Yes, there is a new note that pops up today (for me) and now it crashes the whole program when you are forced to answer the questions. I cannot run my payroll that's due today because of it!!! Unfortunately quickbooks is horrible with these types of things.

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