Pay and Protect your Expats with Humanic
Pay and Protect your Expats with Humanic
Pay and Protect your Expats with Humanic
Pay and Protect your Expats with Humanic
Pay and Protect your Expats with Humanic
When an employee is put on assignment overseas, they are exposed to a host of critical and complex payroll considerations.
Humanic's payroll solutions are specialized with your expat in mind!
When an employee is put on assignment overseas, they are exposed to a host of critical and complex payroll considerations.
Humanic's payroll solutions are specialized with your expat in mind!
When an employee is put on assignment overseas, they are exposed to a host of critical and complex payroll considerations.
Humanic's payroll solutions are specialized with your expat in mind!
When an employee is put on assignment overseas, they are exposed to a host of critical and complex payroll considerations.
Humanic's payroll solutions are specialized with your expat in mind!
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What is the OBBBA?
The One Big Beautiful Bill Act (OBBBA), passed as H.R. 1 and signed into law on July 4, 2025, is landmark federal legislation that introduces sweeping changes to payroll tax reporting, employee benefits, and overtime treatment.
Even though the official short title was dropped during the legislative process, it is widely referred to as OBBBA. This legislation directly impacts how employers classify, report, and withhold taxes on various forms of compensation.
Key Changes Affecting Employers
Overtime Income Tax Deductions
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Up to $12,500 per individual ($25,000 joint) in overtime wages may be exempt from federal income tax (2025–2028)
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Required correct classification of overtime earnings to avoid W2 misreporting
Tip Income Deduction
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Tip-earning employees may deduct up to $25,000 in cash tips from taxable income.
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Employers must ensure accurate payroll reporting and proper use of tip-related earnings codes
Fringe Benefit Adjustments
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Starting in 2026, bicycle commuting reimbursements and most moving expense reimbursements are no longer excludable from income.
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Employers should update payroll configurations and fringe benefit policies accordingly.
Additional Resources
DOL FLSA -
Overtime Guidance
The Department of Labor’s official FLSA guidance explains who qualifies for overtime, how the “regular rate” is calculated, what counts as overtime hours, and which employees are exempt. If your organization uses special overtime rules (e.g., 2.0× pay or unique bonus structures), this resource will help ensure your payroll practices align with federal law—avoiding misclassification and ensuring compliance with OBBBA’s reporting and tax standards.
OBBBA & Payroll -
What Payroll Teams Must Know in 2025
& Beyond
In this Post, Humanic outlines the most pressing payroll changes introduced by the One Big Beautiful Bill Act (OBBBA). From federal tax exemptions on tips and overtime to the introduction of pre-tax wellness benefits (up to $10,000 annually), the article highlights how payroll teams must adapt systems, revisit 2025 payroll records, and communicate proactively with employees. With retroactive tax implications and evolving IRS rules, this post is a must-read for HR and payroll leaders preparing for 2025 compliance.
Payroll & HR OBBBA -What Payroll & HR Need to Know for 2025 Compliance (OBBBA)
Signed into law on July 4th, 2025, this sweeping legislation changes how employers handled taxation, benefits, immigration compliance, and federal reporting; starting NOW and continuing through 2028.
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In this summary, we've provided a focused breakdown of Payroll & HR OBBBA Compliance and what matters most to your role, your people, and when action is required.
What You Should Do Now
Review your Overtime Codes
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Ensure your pay codes align with FLSA standards.
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If your company uses enhanced rates (e.g., 2.0x), clearly distinguish these from standard overtime in your payroll system.
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Audit W-2 Reporting Settings
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Confirm correct handling of overtime, tip income, and fringe benefits to reflect new deduction rules.
Stay Compliant with IRS & DOL Updates
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Guidance on OBBBA implementation is evolving.
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Watch for updates on earnings thresholds, reporting formats, and year-end documentation.
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