OBBBA Compliance Blog

Understand the OBBBA's tip tax provisions, who qualifies for the deduction, and what employers need to do for W-2 compliance in 2026.

A complete timeline of OBBBA compliance deadlines for 2026, including W-2 filing dates, payroll setup windows, and penalty thresholds.

Learn which types of tips qualify for the OBBBA deduction and how to distinguish voluntary tips from non-qualifying auto-gratuities.

How tip pooling works under OBBBA, which pooled tips qualify for the deduction, and how to report pooled tips on W-2s.

Everything you need to know about Treasury Tipped Occupation Codes — what they are, how to find the right code, and how to assign them to employees.

How the OBBBA overtime deduction works, how to calculate qualified overtime, and how it interacts with FLSA regular rate requirements.

A state-by-state guide to OBBBA conformity — which states automatically follow the federal tip and overtime deductions and which have separate rules.

The OBBBA includes provisions beyond tip deductions. Learn about overtime rules, business deductions, and other changes that impact restaurant operations.

Step-by-step guide to setting up W-2 Box 12 codes (TP, TS, TT) and Box 14b TTOC codes for OBBBA compliance.

How to configure your restaurant payroll system for OBBBA compliance, from tip tracking to W-2 export.

A 15-step compliance checklist for restaurant owners to prepare for OBBBA W-2 reporting requirements.

How to distinguish auto-gratuities from voluntary tips under OBBBA and why the classification matters for W-2 reporting.

Best practices for explaining OBBBA tip deduction changes to your tipped employees, including talking points and FAQ answers.

How to configure your POS system to track tips properly for OBBBA compliance, including cash tip reporting and credit card tip reconciliation.

A guide for CPAs and accountants on advising restaurant clients about OBBBA tip and overtime deduction requirements.

Understand the IRS penalty tiers for incorrect W-2 reporting under OBBBA — from $60 per form to $680 for intentional disregard.

How hotels should handle tip reporting under OBBBA, including housekeeping tips, concierge tips, and bellhop gratuities.

How the OBBBA tip deduction interacts with the existing FICA tip credit for salons, spas, and beauty businesses.

Compare how Gusto, QuickBooks, ADP, and other payroll systems handle OBBBA W-2 requirements, and where they fall short.

How multi-unit restaurant operators can manage OBBBA compliance across locations, including centralized reporting and per-location tip tracking.

How accountants and bookkeepers can use OBBBA compliance software to manage tip and overtime reporting across client portfolios.

See how TipFort automates tip tracking, overtime calculations, cap monitoring, and W-2 export for OBBBA compliance.

How the OBBBA tip deduction differs from the existing FICA tip credit and what it means for restaurant payroll taxes.

How bar owners should handle OBBBA tip reporting for bartenders, servers, barbacks, and other tipped bar staff.

How casinos should handle OBBBA tip reporting for dealers, servers, valets, and other tipped casino staff.

The short answer: no. Auto-gratuities and mandatory service charges do not qualify as tips under OBBBA. Here's why and what it means for reporting.

Yes — the OBBBA tip deduction is an income tax deduction, not a payroll tax exemption. FICA still applies to all tips. Here's how it works.

Box 14b on the 2026 W-2 is where employers report the employee's Treasury Tipped Occupation Code (TTOC). Here's what it means and how to fill it in.

Step-by-step guide to calculating the qualified overtime deduction under OBBBA, including the FLSA regular rate formula and the 0.5x premium isolation.

Restaurant owners cannot claim the tip deduction for themselves — it's for W-2 employees only. Here's who qualifies and the employer's role.

Everything restaurant owners need to know about OBBBA compliance — from tip qualification to W-2 reporting, overtime rules, and penalty avoidance.

A comprehensive step-by-step guide to OBBBA W-2 compliance — covering initial setup, ongoing data entry, cap monitoring, and year-end filing.

A comprehensive guide to choosing OBBBA compliance software — what features to look for, how to evaluate vendors, and why automation matters.