Hunton Employment & Labor Perspectives

The “One Big Beautiful Bill Act” (“OBBBA”) signed on July 4, 2025, enacts the widely-publicized “No Tax on Tips” and “No Tax on Overtime” changes to the tax code. These provisions will decrease tax burdens for many employees, but also present new compliance obligations for employers. These changes are retroactive to January 1, 2025, so employers should be focused on these issues now.

On August 25, 2023, in response to concerns regarding the timely implementation of SECURE 2.0’s Roth catch-up contribution requirement, the IRS issued Notice 2023-62, which provides that 401(k), 403(b) and 457(b) plans now have until December 31, 2025 to comply.