The One Big Beautiful Bill (OBBB) introduced new federal income tax deductions. OnPay helps you track OBBB-qualified tips and overtime while handling all deductions. From tracking and calculating to reporting eligible earnings, built-in automation keeps payroll compliant without the extra work.
Just enter qualified overtime hours or tips into OnPay, and our payroll software automatically calculates and reports the qualified amounts. You don’t have to change anything about how these pay types map to your general ledger.
— Olympic Peninsula Community Clinic
Spend less time crunching numbers for overtime and tips, and more time running your business. OnPay automates calculations, keeps you compliant, integrates with top software, and helps you take care of your team. OnPay handles payroll (and HR) so you can focus on what matters most.
Stop spending hours on manual payroll. OnPay’s payroll software automates tasks, reduces errors, and saves you time — starting at $49/month + $6 per employee:
Try OnPay out for yourself to see how easy payroll and HR can be. To get started, just share a few basic details about your business. Our team of pros will set everything up and import your employees’ information for you.
The One, Big, Beautiful Bill(OBBBA) brings new responsibilities for businesses whose employees work overtime or earn tips. The bill allows such employees to potentially reduce their year-end federal income tax liability when they file their taxes for tax years 2025–2028. But this above-the-line deduction only applies to Federal Income Tax, and not all overtime or tip income is eligible. We break it all down here.
Any payroll system that processes overtime, tip income, or other earnings impacted by the One Big Beautiful Bill Act (OBBBA) must be updated to ensure accurate calculations and reporting for 2026.
OnPay already has the tools you need built in out of the box to support the required tracking and reporting. Eligible earnings — like qualified overtime or tips — are handled directly in payroll, with calculations and reports generated automatically as you run payroll. No manual workarounds, spreadsheets, or post-payroll adjustments required. Because OnPay is the cloud, you always have the most up-to-date version of payroll tools to keep you compliant.
If your payroll provider hasn’t updated their system for OBBBA requirements, employers may need to rely on manual tracking or outside reporting — increasing the risk of errors and compliance issues.
Experts and clients say OnPay is the best, but it’s important to weigh your options. Start by making a list of top payroll features you’d like to have in a payroll service, and compare providers. Once you’ve narrowed down your options, look for a provider that offers easy setup, automated tax filings, OBBBA provisions, and responsive support. OnPay checks all these boxes, making it a top choice for business owners who want hassle-free payroll.
You can get set up super fast – we’ll just need some basic details so our team can help assist you with your setup. And our in-house payroll experts will do all the heavy lifting — from setting up your dashboard to adding your clients and their employees. We’ll even enter any prior wages to make it easy to switch. And can have you up and running in at your own pace.
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