Payroll Compliance Blog
Written by a working payroll manager. Practical explanations of the rules that trip up real teams — with free calculators attached.
Tax Treaties: Exemptions, Rates and Standard Deductions
Not every US tax treaty works the same way. Some exempt your wages outright, some cap the exemption, and some — like India's.
No Tax on Overtime: How the OBBBA Deduction Actually Works
The One Big Beautiful Bill Act's No Tax on Overtime deduction is now law for tax years 2025–2028. Here's exactly what's deductible, what isn't.
W-2 Box 12 Code TT: Where Your Qualified Overtime Shows Up
Code TT is the new W-2 box for qualified overtime compensation, starting with tax year 2026. What the number means, when it arrives, and what to do if it is missing.
How to Claim the Overtime Deduction on Schedule 1-A
Schedule 1-A is the form that turns your qualified overtime into an actual refund. Part III, the eligibility gates, and how the cap and phase-out are applied.
Which Overtime Actually Qualifies: FLSA vs State Law
The overtime deduction covers FLSA-required premium pay only. California daily overtime, seventh-day premiums, and contractual overtime generally do not count.
Employer Reporting Obligations for Qualified Overtime in 2026
Separate reporting of qualified overtime became mandatory for tax year 2026. What payroll has to isolate, where it goes, and the configuration mistakes to check for.
20 Years of Overtime Enforcement: $2.7 Billion Recovered, Cases Down 69%
We analyzed 334,272 Department of Labor wage-and-hour cases. Overtime enforcement has narrowed sharply since 2006 — but the average worker in a case now recovers nearly twice as much.
How to Fill Out Form 8233 for Chinese F-1 Students
A step-by-step guide for payroll managers processing Form 8233 for Chinese F-1 students claiming tax treaty exemption on wages and fellowship payments.
Form 8233 vs W-8BEN: Which Form Does Your NRA Employee Need?
Form 8233 and W-8BEN both claim tax treaty benefits for nonresident aliens, but they're used for different income types.
Substantial Presence Test: Resident Alien or Not?
The substantial presence test decides whether a foreign national is a resident alien for US tax purposes. Here is how the day count works.
NRA Withholding When an Employee Has No SSN or ITIN
A nonresident alien employee without a Social Security Number or ITIN creates a withholding and reporting problem.
FLSA Overtime for Salaried Non-Exempt Employees
Salaried does not mean exempt. Non-exempt salaried employees get FLSA overtime, and the calculation differs from hourly workers.
Gross-Up Calculations for Bonus Payments: The Formula
When an employer wants to give an employee a specific net amount, a gross-up calculation determines the gross pay needed after all taxes are withheld.
How to Calculate Retro Pay After a Mid-Year Raise
When a raise takes effect retroactively, you owe back pay for prior periods plus potentially additional overtime.
Tax Treaty Student Wage Exemptions by Country (2026)
Which US tax treaties exempt student and trainee wages, how much and for how long: China, India, South Korea, Germany, France, Canada, the UK, Japan, Mexico and the Netherlands, with the treaty article for each.
W-4 Step 2 Checkbox: What It Does and When to Use It
Learn what the W-4 Step 2 checkbox does and discover when your employees should use it to adjust their tax withholding accurately.
The FLSA Regular Rate Trap: How Bonuses Raise Overtime
Most payroll managers know overtime is 1.5x. What trips teams up is that nondiscretionary bonuses increase the 'regular rate'.
NRA Tax Withholding: A Payroll Manager Guide
Nonresident alien withholding is different from standard W-4 withholding, and the liability for getting it wrong falls on the employer.
Why the NRA Tax Wizard Is Free for Students
International students overpay U.S. taxes because treaty benefits are confusing. YourPayBot's NRA wizard generates Form 8233 and W-8BEN for free — here's why, and how it works.