Baxter & Harbin, LLC

07/22/2025

🚨 New Overtime Tax Break: What Employers Need to Know

Starting January 1, 2025, workers who earn federal‐mandated overtime pay can deduct the premium portion of that pay from their taxable income—potentially keeping more of their extra hours worked.

Here’s what employers need to communicate and prepare for:

Who Qualifies for the Overtime Deduction

- FLSA non-exempt employees – those entitled to time-and-a-half pay once they exceed 40 hours/week.

- Only the overtime premium (the “half” in time-and-a-half), not total wages, qualifies.

- Employees must have a valid Social Security number (and spouses if filing jointly) to claim the break.

Deduction Limits & Phase-Out

Maximum deduction per taxpayer:

- $12,500 for single filers
- $25,000 for married filing jointly
- Phase-out begins when modified AGI exceeds $150,000 (single) or $300,000 (joint).
- For every $1,000 over the threshold, the deduction is reduced by $100.

- Temporary provision: applies to tax years 2025–2028 unless extended by Congress.

Reporting Requirements for Employers

- Track and aggregate qualified overtime compensation separately in payroll systems.

- Report total overtime premium on employees’ Forms W-2 in a new line or designated box.
- Furnish year-end statements showing total overtime pay so employees can claim the deduction on their 2025 returns.
Action Items
- Review payroll software for overtime tracking and separate reporting fields.
- Update W-2 templates to include an overtime premium line.

- Communicate with staff: explain who qualifies, how much they can deduct, and when to expect updates on their W-2.

02/19/2025

The BOI injunction was lifted yesterday and a new deadline of March 21, 2025 was implemented. If you haven't already done so, please file your Beneficial Ownership Report with Fincen.

The form is rather simple to fill out. Go to Fincen.gov and select the BOI button. You will be required to uplaod a copy of a diver's license for all beneficial owners.

12/28/2024

Congrats to our final 2024 Business of the Month sponsored by AF Realty Group, Baxter & Harbin, LLC!

We had the BEST time celebrating this special business! A long standing member of the Chamber of Commerce and serving the Perry area for overr 40 years, Baxter and Harbin is a staple in the community!

Once again, congratulations to this amazing team and thank you for your continuous support of the Perry Area Chamber of Commerce!


✨ Baxter & Harbin, LLC
📍 1005 Jernigan Street, Perry, GA, United States, Georgia
📞 478-987-2641

12/04/2024

https://www.forbes.com/sites/matthewerskine/2024/12/04/court-blocks-corporate-transparency-act-a-win-for-federalism/

The U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction against the Corporate Transparency Act, citing constitutional concerns and significant compliance burdens, while the future of the act remains uncertain amidst potential administrative and legislativ...

11/07/2024

If you have an LLC, regardless of whether it had any activity, you are required to file your BOI report. Be sure to go to fincen.gov and file yours by the deadline. Our insurance will not allow us to assist you with the report.

Here’s what you need to know:

- For entities formed or registered prior to January 1, 2024: You must file an initial beneficial ownership information report by January 1, 2025.

- For entities formed or registered on or after January 1, 2024: You must file the report within 90 calendar days of formation.

- For entities formed on or after January 1, 2025: You must file the report within 30 calendar days of formation.

10/09/2024

Due to the impact of Hurricane Helene in Georgia, USDA has approved a temporary SNAP Hot Foods waiver in 84 counties in Georgia. SNAP retailers in Georgia may temporarily accept SNAP benefits in exchange for hot foods through November 7, 2024.

09/05/2024

Yes you must file your BOI report. However this is a SCAM! Go to fincen.gov and file your BOI yourself in 5 minutes.

08/14/2024

Our phones are down today. Our service provider is working to correct the issue. In the meantime, please contact us via e-mail. We apologize for any inconvenience.

01/18/2024

owners, if you were misled by aggressive advertising into believing you qualified for the Employee Retention Credit, has a program to help you. Our new ERC Voluntary Disclosure program allows qualified employers to repay at a discounted rate. Employers who received interest will not need to repay the interest.

Hurry! Deadline to apply is March 22, 2024.

Find out if your business qualifies at https://ow.ly/VqTY50QlWjI.

01/18/2024

01/17/2024

If you had to train your staff to implement new equipment or technology, you may be eligible for GA's employee retraining credit.

https://www.tcsg.edu/wp-content/uploads/2019/09/Georgia-Retraining-Tax-Credit-Guide.pdf