Companies, Workers Gauge Reporting on Tax Law’s Overtime Break

Companies are weighing how much help to give employees to calculate the new overtime deduction in the upcoming tax-filing season.

Their decisions could play a factor in the success of the rollout of the overtime deduction, one of the key tax breaks in Republicans’ 2025 tax-and-spending law that benefits individuals.

At issue is whether companies choose to separately report the income eligible for the overtime deduction on the tax forms they send employees. The IRS gave companies that don’t do this penalty relief, while companies that choose to report the compensation face some legal risk if they do so ...