No Tax on Overtime

Techs in the shop seem excited about no tax on OT passing. It will apply to the 2025 tax year if it does and those of us who are aware of that have already began working more hours.

Politics aside, this place runs on OT. Its been a free for all for years. We have techs already working 12+ hour days. Management lets us work as much as we want.

How will Honeywell respond? The dynamics of the business will change. Salaried employees that already put in unpaid OT I imagine are not going to be happy. What will our great leaders do to make sure the hourly employees get the shaft?

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I used to be exempt in IGS and we would get straight time after we worked 48 up to a max of 12 extra hours paid per week. The paystub showed the extra hours as overtime. I doubt Honeywell wants the extra effort to report overtime and will just say "exempt" and not do anything. It will take a lawsuit to fix?

Heard from a very good source in Aero that Honeywell will ignore any no tax on OT requirements. The fear is that exempts will want to get paid for OT. Can't have nay of that rubbish.

@e8 exempt employees will be working weekends as always. have a candy bar.

Does no tax on overtime apply to exempt employees? So a salaried worker that gets straight time after X number of hours overtime worked gets a break on taxes? If so, great. If not, you can bet Honeyhell will work those folks to pieces.

@d2: The overtime tax deduction will allow you to claim up to 20% of your base pay. Example: If your base pay is $60,000 per year, you will be able to get a tax deduction of $12,000 tax free. Overtime pay over that is still taxed at normal rates.

Here's some info on what the current overtime bill includes.

You’ll still pay taxes upfront.
While the bill offers real tax savings, it doesn’t change withholding rules. That means your employer will continue to withhold taxes from your overtime wages throughout the year. You’ll only receive the benefit when you file your taxes and claim the deduction.

How the deduction would work.
Eligible workers would be able to deduct up to 20% of their overtime income from their federal taxable income
Claim the deduction even if they don’t itemize and use the deduction through December 31, 2029

To qualify, the overtime must be paid under the Fair Labor Standards Act (FLSA) and the worker’s adjusted gross income (AGI) must be:
$100,000 or less for individuals
$150,000 or less for heads of household
$200,000 or less for joint filers

I drive for rideshare when I'm working at Honeywell. Are those TIPs tax free?

Veterans don't pay income tax. This should be a non-issue

Wait till they hear that the no tax on OT only applies to earnings under 60k

Thread regarding Honeywell International Inc. layoffs

No Tax on Overtime

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