OVERTIME PAY DEDUCTION: EMPLOYEE IMPACT, EMPLOYER RESPONSIBILITY The OBBBA introduces a new deduction for employees earning overtime, effective 2025-28. Although dealerships will not directly benefit, they will have reporting obligations and should prepare to answer employee questions. • Deduction applies to the “half” portion of time-and-a-half overtime pay. • Maximum deduction: $12,500 (single) or $25,000 (joint). • Phases out at MAGI of $150,000 (single) and $300,000 (joint). • Employers must file information returns with the IRS and provide employees with annual statements of qualified overtime pay. Notably, the IRS will not update withholding tables for 2025, so employees will not see immediate changes in take-home pay, even though they may qualify for deductions at tax filing. FINAL THOUGHTS The OBBBA introduces sweeping changes with both opportunities and challenges for dealerships. While some provisions — like bonus depreciation — are direct benefits, others — like EV credit repeals — may create new hurdles. Dealers should work closely with their tax advisors to understand the bill’s full impact on their specific operations and to maximize potential advantages. Tasha Sinclair, CPA/ABV, is a principal of Tetrick & Bartlett PLLC and has been providing accounting, tax, valuation and consulting services to automobile dealers since 2002. Tetrick & Bartlett PLLC currently serves over 50 dealers in West Virginia, Virginia, Ohio and Pennsylvania and is a member of the AutoCPA Group, a nationwide organization of CPA firms specializing in services to automobile dealers. Tasha can be reached at tsinclair@tb.cpa or (304) 624-5564. ADVERTISE HERE! RESERVE YOUR SPOT TODAY! 801 676 9722 sales@thenewslinkgroup.com RESEARCH SHOWS: • The average ROI for print advertising is around 130%. – Electro IQ • 56% of consumers trust print marketing more than any other advertising method. – AllBusiness.com • Print media has a 90% brand recall rate, the highest among all advertising channels. – Sonder & Tell Don’t just take our word for it! PRINT ADVERTISING isvital for success. WVADA NEWS 19
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