Employers Won’t Be Fined for Incorrect Reporting of 2025 Tips and Overtime, Treasury Department and IRS Say
On November 5, 2025, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) issued guidance confirming employers will not be penalized for failing to report cash tips and overtime compensation in the manner required in the latest federal budget reconciliation bill. This guidance may be especially relevant to employers in the entertainment, hospitality, restaurant, and tourism industries.