What the No Tax on Tips Act Means for Restaurants

Signed into law on July 4, 2025, the No Tax on Tips Act created a major new tax benefit for hospitality workers, exempting up to $25,000 of reported tips (and certain overtime earnings) from federal income tax each year through 2028.

While this change primarily impacts employees when they file their individual returns, operators should understand what’s changing, what’s not, and how to prepare their staff.

In this session, CBIZ, a national leader in tax and advisory services, will walk through the new law and its ripple effects for restaurants, including:

• How the new tip and overtime exclusions work and who qualifies
• Employer essentials: payroll reporting, W-2s, and possible W-4 changes
• Impacts on recruiting, retention, and job postings
• Service charges, tip pooling, and state-level considerations
• Steps operators can take now to educate staff and stay compliant

Get up to speed on what the law really means—and prepare yourself before year-end planning kicks into high gear.

About CBIZ:

CBIZ, Inc. (NYSE:CBZ) is a leading professional services advisor to middle market businesses and organizations nationwide. With unmatched industry knowledge and expertise in accounting, tax, advisory, benefits, insurance and technology, CBIZ delivers forward-thinking insights and actionable solutions to help you anticipate next steps and accelerate growth. They help your organization navigate challenges, turn risk into opportunity and drive sustainable, long-term excellence — where you are today and wherever you want to grow. Their 10,000+ team members across 160+ locations in 21 major markets provide top-tier industry expertise with local delivery, relationships and support.