The New Overtime and Tip Tax Law — What It Means for Small Business Owners

Speaker A00:00:32

Running a business isn't easy. It's long hours, tough calls, and relentless pressure. No shortcuts, no handouts. Just grit, grind and the will to keep going when most would quit.Welcome to grit and growth business, the show for entrepreneurs who know success is built the hard way. Hosted by Ralph Estep Jr. A seasoned business coach, accountant and fellow fighter in the trenches.Each episode brings you real talk, proven strategies, and the unfiltered truth about what it really takes to build something that lasts. Because if you've got persistence, perseverance and determination, this is the place for you. This is Grit and Growth business.

Speaker B00:01:20

Hello there. I'm Ralph Estep Jr. I want to welcome everybody to our grit and growth business live show.This is the show for real business owners who are building it the hard way. Real stories, real grit and real growth. And every Tuesday night we sit down and talk about what's really going on in our businesses.Because guess what? I'm a business owner just like you. We're not talking about fluff. We're not talking about theory.We're talking about truth and about what actually works in the trenches. And tonight we got a topic that's got a lot of people talking. Now. This is this new federal tax law.It was just signed in several months ago, but it changes how tips and overtime are handled for tax purposes. So that's why a lot of people are interested in that.So if you've got hourly workers, maybe you're an hourly worker yourself or you have servers or stylists or mechanics, anyone who gets paid extra for their effort.This is going to be the episode for you because we're going to break it down what it means for your business, what it means for your team, and what it means for your bottom line. Because there are some real serious things here and we need to understand it before we get too deep.I want to let you know whenever I do an episode of Grit and growth, we do a action sheet now. We just moved our action sheets into our community. We launch this community about a week ago. It's called the grit and growth business community.You can get to it real simple. Go to gritngrow business.com join. I'm not going to ask you to buy anything there.There are some ways to support the show there, but it's absolutely free. You just go to grit and growth business.com join and hey, here's the best part.You can submit your own questions there for the show and you can connect with other business owners just like you. I'll be putting tools in there. We're just building it. So bear with me as you do this. We'll be adding more content as we go.But my producer Abby's been posting the action sheets over there. So if you missed of the episodes so far, and this is actually episode 27, believe it or not, you can find all the action sheets over there.And that's@gritngrowthbusiness.com join and that's where you want to go. All right, well, let's get into it tonight. Let's start with a question, and this is a really good question for business owners.What if you could legally reduce your taxes? Now I'm not talking about reducing them to where you go to jail like Al Capone. It's not what I'm talking about at all.Without changing how you pay people. Well, that's what's on the table right now with this new law. And this new law is designed to give a deduction for qualified tips in overtime.And I'm going to get into the nitty gritty details here tonight so that you can explain it to your staff or you can even understand it yourself because this is something that could put money back in the pockets of both you and your employees. But here's the problem. It's what I'm seeing a lot of in my own client base. Most business owners don't know when it's happening.They don't know what's going on with this. So tonight my goal is to clear that up. I'm going to tell you what the law actually says. I'm going to tell you how it works.And I'm going to tell you more importantly than any of those things, how do you prepare yourself so you're ahead of the curve when tax season hits? Because guess what? We're still in the middle of this government shutdown. I think it's just about done.But there are going to be a lot of regulations the IRS going to have to write and they're going to have not a whole lot of time to do it. So that's what I'm going to get to tonight.I got some real questions that people have sent over to me over the last week or so talking about this big beautiful bill. So tonight we're going to talk about how they handle tips, how how to handle overtime tracking and how it affects your take home pay.Because that's really what it's all about. Because if you're like a lot of people, you feel like government keeps moving the goalposts. You feel like I just finally figured this out, Ralph.And now my small business, the government has moved the goalpost again. But I'm going to show you tonight how you can pivot with these changes instead of getting run over by them. Nobody wants to get hit by the changes.So tonight I want to really prepare you for what's ahead, which is why tonight's pressing night issue of the week. I told you every time we'll have a pressing issue of the week.Well, tonight's is all about this new overtime and tip tax law because I want to really, I want you to really understand what it means for small business owners. And here's the deal. This law came through as part of a federal tax package. That's what you need to understand.First of all, this is a federal law, it's not a state law. It's part of what they called the one big beautiful Bill Act. Now, a lot of people say, well, that name's a bit much, Ralph, but I get it.But the impact is real and for business. For years, business owners have had to withhold full taxes on every bit of tip income and every hour overtime. And you know this.If you've got employees, when employee gets their tips, assuming they're reporting them as they're supposed to, you got to withhold taxes on that. And if you're paying them overtime, you got to withhold taxes on that.But now for the first time, and this is the big headline, certain tips and overtime can qualify for a deduction. And we're going to get into the details of that because it's not exactly as it seems. It's still a good thing. But I want you to understand it.It's not a tax free holiday. A lot of people think they heard in the news, well, there's no tips, there's no tax on tips and there's no tax on overtime. Well, that's exactly true.And it's not immediate. It's a deduction when you file your tax return. So this is going to be a big difference when you file your tax return in April.But a lot of people don't understand that. They thought it was going to be immediate.So if you're in the hospitality industry, if you're in the retail industry, if you're in a service industry, this is huge. And the reason it's huge is a lot of your income comes from tips and it comes from overtime.And I just want to tell you this is a chance to reward your team and save your business money. So I want to break this down into three main points. I'D like to make things simple. Let's get into the first one. I want you to understand the basics.This new law creates two deductions, and I want you to understand it's a deduction. So this is going to be done on the tax return that's filed for this year's taxes, which will be done in the spring of 2026.There's two basic deductions. The first one is for qualified tips. And now listen, here's. I'm going to start this right now. This is where I get into a little bit of the details.This is for people who customarily have tipped positions, servers, people who have, you know, my son's a barber, for example. He earns a lot of income from tips customarily. This is not the time to say, oh, you know what? I'm going to start paying my staff through 100% tips.The IRS isn't going to let that go. It's customarily tip position. So that's the first thing. Second thing, it's for qualified overtime compensation.Now, this is under the FLSA rules, and I want to get into, into the bog down. But that, that's the fair labor stand. We're not going to cover that on tonight's show.But generally, if you have to pay overtime, then overtime compensation will be doing this. Now, here's the other thing. I want you to understand, this is not a forever law. This is only good for tax years 25, 26, 27 and 28.So basically, four years, it's good for the year we're in, which is kind of crazy if you think about it, because it just got approved this year. So it's sort of a retroactive deal. But it's only good for those years. And here's the problem. The IRS is just now starting to update the forms.Well, they started to before this big government shutdown. So who knows when this is going to get done.So as the IRS is, and I just read some guidance they put out last week, this, this is what they're calling a planning year. They're going to lift some penalties.They're going to do that sort of thing for small business owners so you don't get pinched if you haven't done all the good work for this. But trust me, you want to do the good work because this is going to help you and your employees.So if you don't hear anything else I say at the beginning, start tracking these things. Now. If you're a small business owner, you've got to be tracking your tips and you've got to be tracking overtime so you don't scramble later.Now you should be doing these things anyway because most state department labor departments require you to track tips and they require you to track overtime. So you should be doing this. But that's the first thing. Second thing I want you to understand, you got to understand the limits.A lot of people heard of the president. They heard a lot of people in Congress say, oh, there's not going to be any tips on any tax on tips. There's not going to be any taps on overtime.Well, that's not exactly true. There's not a blank check here for tips. Let's start there. The deduction caps at $25,000 per employee.So and here's the thing is what I would say for most people, you're not going to get more than $25,000 in tips. Now, it depends on your industry. You might have an industry that has a huge amount of tips, but the maximum is $25,000 now for overtime.Again, it's not on all overtime. It's on overTime up to $12,500 for single payer and $25,000 per employee if it's a joint filer. So basically, what am I saying to you?$25,000 in deductions for tips and 12,500 for overtime. This is the other thing I want to tell you. There is a phase out because they really are trying to target this on, on middle income people.So there's a phase out when you're single once you hit $150,000 and if you're filing a joint return, it's 300,000. So it's not going to affect a ton of people in that phase out.But understand that it's going to help most what we call working class employees and small business owners who employ them. But understand it's not 100%, it's not a blank check and there are some income limits.But here, number three, this is the thing you should know right now, you've got to audit your payroll system and ask this very simple question. Are you tracking tips and are you tracking overtime separately?Now, while I'm talking about this, if you are trying to handle payroll yourself and you're like, Ralph, man, this has got me lost. I do offer professional payroll services through my business.You can reach out to me, I'll put some information in the show notes, you can come right to the community. We can help you with that. We can help you do that. But you've got to be doing that.So right now, if you have a payroll provider, you need to go out there and flag that income. I hope that most of the payroll providers are already tracking this for you.We do a ton of payrolls here in my office, and we started talking to our clients about this a while ago now. We were already tracking overtime. We were already tracking tips because the Delaware Department of Labor.I'm in Delaware, as a matter of fact, it requires you to do that anyway because you. If your person works more than a certain number of hours, you have to pay them overtime. So we're tracking that.But what I've seen is a lot of small business, a lot of mom and pop shops, they haven't really been doing that. So if you're not doing that, listen to me, hear me loud and clear.Start now and go figure out what it's been since the beginning of the year, because at some point, your employee's going to come to you and say, ralph, how much did I earn in overtime this year? How much did I get in tips?And if they don't know that information, they're going to struggle when they go to do their taxes, and they're going to be angry with you because they would have a deduction for this. So make sure you're doing it. Talk with your payroll provider. Educate your team. Make sure everyone aboard understands it.Make sure they understand it's a tax deduction, not instant cash. We have a listener question that was sent over that. I'm going to talk about that in a few minutes.But they need to understand it's not an instant thing. This is going to happen on their tax return. It doesn't happen when they get their actual pay. Stubborn. And here's another thing.They haven't talked about this a lot. It's a little trick here. It's going to encourage people to report more tips, which seems like, okay, that's great.Well, I've got a $25,000 tip deduction. But here's the problem. When you report those tips, you're still paying Social Security and Medicare tax on it and state income tax.My son ran into this. He's a barber. And I said to him, I said, son, listen, you need to report all your tips because you're going to get this $25,000 deduction.And he says, well, dad, that's great. Okay, I'll do that. Well, he got his next paycheck, and he's like, dad, what happened? My. My net paycheck went down.I said, oh, yeah, I hadn't thought about that your net paycheck went down because they have to withhold the Social Security and Medicare and state taxes on those tips that maybe you weren't reporting for. I'm not telling you not to report. You know, nudge, nudge. You should be reporting those things.But if you all of a sudden start reporting that, you might notice that your paycheck actually drops. So if you're getting those questions from your employees, they. That's the reason they haven't made a big production of this. But it's the truth.You're still paying Social Security and Medicare tax and state taxes for those tips. So you could actually have a situation where your employees take home pay even though they're reporting more. Quote, income could actually be less.But this is really a great recruiting tool.So if you have a business that customarily has tips or that customarily has overtime, this is one of the things you can say to your employees, Work here and keep more of what you earn. That's the beautiful part. But understand, the IRS is still working on this. This is an evolving thing.So understand the basics, know the limits, and then know what you should do now. So just. I hope you understand all that.We're going to get into some actual questions that have been sent over to me, but this is a big deal because it's going to save average person quite a bit of tax. And if you don't understand, if you're not tracking those things, you're going to find yourself. Here's the problem.You're going to find your employees are going to be upset with you because they're going to go and get their taxes done. And the tax preparer, their accountant, somebody like me, is going to say, okay, let me see your W2. Oh, I see on your W2. And here's the problem.The IRS hasn't even defined those fields yet. Now, tips have always been on the W2. That's not going to be a big deal. That one doesn't worry me.The overtime one does, because that's a new field on the W2. So there's going to have to be some changes to the W2. The Nairs hasn't issued any of that yet.And here we are in November, so we gotta make sure that gets done. Well, let's get into some questions that we got from some people who have sent these over to me. We're gonna start with our first question.And this is one is from Jasmine. And Jasmine writes to us from Raleigh, North Carolina. And this is what Jasmine says she Says Ralph. I own a small salon in my style.Let's get tips daily. How do I know which tips qualify for this deduction?Great question, Jasmine, because you're probably feeling confused and you're probably, like I said a little while ago, you're worried about this. You want to do what's right, but you don't want to get flagged by the irs.So here's what you need to do, Jasmine, and anybody else who has this situation where your employees make tips, start tracking all the tips. If you've got a point of sale system, that's a great place to do it.Don't just make a little, you know, one of my clients, a restaurateur person, said, well, we just kind of cashed the drawer at the end of the night. We just kind of divvy it up. That's not going to work.You've got to keep track of this information because you're going to need to report that on the W2. So no more cash in the door guessing.Only tips that are reported on the W2, on the pay stubs are included in payroll, are going to count as qualified. So hint, hint, nudge, nudge. You see where I'm going with this?If your servers, if your people who are earning tips, your stylists want to get this benefit, they're going to have to report that as income, which means they're going to be paying more Social Security and Medicare tax as they go. But if they're not reporting it, guess what? They're not going to take that deduction comes tax time. So you need to educate them.You're going to have to tell them this is going to show up on your W2 form. But the only way it's going to show up on your W2 form is if you declare and report these tips as you go.That's that digital trail, that's the audit record. The receipts and records are going to protect you later.So coordinate this with your payroll provider now to flag those items because you don't want to be trying to do this after the fact because you're never going to be able to figure it out. You know, you're not going to go back and say, well, last March, how much did we have in tips? It's not going to work.So you got to be proactive about this. Tell your employees. First of all, your employees should be reporting their tips anyway. That's just a rule.I'm not the world's policeman, but they should be reporting those things. But coordinate these things now. Because, Jasmine, you want to stay ahead of the curve.You just got to make sure you're doing this now so you don't get yourself in trouble. So, Jasmine, I hope I answered your question, but all the tips that are reported in the payroll system are going to be qualified tips.Well, let's get on to our second question. And. And this one comes to us from Kevin from Denver, Colorado. And Kevin writes this. He says, I own a plumbing company.My guys often work overtime on emergency calls. Does this law apply to me, too? Kevin, I get it.Your frustration's real because so many people are paying overtime constantly and you want some relief. That's a fantastic thing. So, Kevin, yes, it applies to you. Overtime wages qualify if they're non exempt under flsa.I mentioned this a little while ago. I don't want you to get lost in that.If you're paying your employees and they get qualified overtime, which means they're entitled to overtime, there are some people who don't get overtime. I'm not going to go there tonight. Talk to your HR person. Go study flsa. But in general, if you're paying overtime, yes, it works for you.But you got to track the premium portion. That's that extra half time, not the base pay. It's only the amount that's over the base pay. Simple example.Let's say that you pay somebody $10 an hour, which is. And Delaware, the minimum wage is 15. But let's just say for simple math, you pay them $10 an hour.Well, if they work overtime, you pay them time and a half. So you're paying them $15 an hour. Well, the overtime portion of that is the $5.That's the part that the IRS is going to allow you to take a deduction for what they call the premium portion. So again, you're going to need to have detailed timesheets to understand how to do this.You got to understand the start time, you got to understand the stop time. Listen, you should be doing this anyway because most state Department of Labors require you to be keeping track of this information.But again, somebody might not be doing that yet. Make sure you understand it. Set up a payroll category called qualified overtime.That way by the time you get to the end of 2025 and your payroll provider or you got to fill out that W2, there's going to be a field on that new W2. Hopefully we get it before the end of the year. I mean, W2's got to go out in January. So I'm hoping they're getting this Done.They better get it done or we're going to have a big problem. But there's going to be a field on that W2 where you're going to have to put in the qualified overtime wages. So talk to your account.If you don't have an account, like I said, you can reach out to me, I can help you with this. But keep them in the loop. Don't just do this at year end.If you're going to scramble around and do this at year end, you're going to get your employees upset and you're going to be living in stress because this is a great thing to retain good workers to because it cuts their tax liability.So if you've got situation where you're paying employees overtime, keep track of it because it's going to give them a tax deduction at the end of the year. Again, it's not as you go, this is a deduction on their tax return. So they're going to get this money as part of their tax filing.Whether they file in March or April, maybe they file real quick in February, they get their money right away, but it's not going to be immediate. It's going to be with their tax return. So let's move on to question number three. And question number three.And you can see it, we're talking about this overtime and tips. I made sure all the questions today were actually living in this realm because this is such a big issue and I haven't seen a lot of press about it.All I've heard in the press is about how, oh, all the tips are going to be no tax and all the overtime is not going to be taxed. But it's not going to be that simple. Well, let's get on to our third question. And this third question comes to us from Maria from Austin, Texas.And Maria says it, she says, I own a restaurant. My servers love the idea of lower taxes on tips, but they think it means bigger paychecks. Right. Now, how should I explain it?Again, this is where your servers might get a little upset because if, if most restaurants, I shouldn't say most, but a lot of restaurants that I know about, not all the servers declare all their tips. You know, it's kind of like a, you know, hint, hint, nudge, nudge, they could declare some of them because if they didn't clear any.Now, honestly, I think now that more people are paying with credit cards and it's kind of hard not to report those things because a lot of times people pay their tips with the credit card, and it's right in your point of sale system. But this is a big deal, Maria. I get it.And it's a challenge in communications because you, your, your employees are going to think, well, you know, if I report these tips, then I'm going to get that money back right away. So you got to manage those expectations. So be clear.You got to explain to them this is a deduction when they file their tax returns, not a change to withholding. It's going to show up next year when they go to the file the return.But like my son learned, if they say to you, oh, Maria, I'm going to declare more of my tips because, hey, you know, I could get up to this $25,000 number, I better make sure I'm declaring all these things.Explain to them it's going to impact their net pay on that paycheck because now all of a sudden they're going to pay Social Security tax, they're going to pay Medicare tax, and they may pay state and local tax as well. So it may actually look like they're getting a tax reduction. They may come back to you and say, Maria, what in the world did you do?Somebody must have messed up the payroll. I'm getting less money than I got before. No, they're paying it forward.And when they go to file their taxes, that's when they're going to get the benefit from it. And you just have to emphasize that this accuracy tracking helps everybody.They should be reporting these things anyway because if you ever get audited by Department of Labor, they're going to come in and look and they're going to say, okay, what does the average server in your area make? And if you're, if your servers aren't reporting that, they're going to look at you and say, wait a second, what's going on here?And the problem I see so many times, especially now that a lot of people pay their tips with credit cards, man, you've got the data right there. You better make sure you're reporting those things because there is a paper trail there. But really understand this.One of the things that I recommend is maybe create a one page tip tracking policy for your team so everybody understands this is how it works. Here's our expectations. Because, Marie, you're not alone in this. A lot of people don't, I don't understand this.I, I've had a lot of people say to me, they, they thought this was like going to be this new stimulus check. I, I see it on Facebook all the time. Is when are we going to get our big beautiful bill stimulus check for overtime and, and tips?Well, it doesn't work that way. This is going to be a deduction. It's going to reduce your other income when you go to file your tax return at the end of the year.So educate your team about this new law so they're aware of what's going on. Because hey, when they go to file their return, this could be a big windfall for them. You think about it, $25,000 in tip income, that goes away.It reduces their tax bingo by 25 grand. That's a lot of money. But it needs to be tracked and it needs to be documented. Well, let's get on to our fourth question.And our fourth question comes to us from Tom from Cleveland, Ohio. Tom says, Ralph, I run a small manufacturing shop with 15 employees. We don't do tips, but we do lots of overtime.How soon should we adjust our systems? Now, Tom, I'm going to say something that's going to come off as a bit of being a little bit mean spirited.Man, you got to have done this a while ago. I'm hoping you're already tracking this information.My suspicion is you're probably already tracking overtime because your HR people or your payroll people have been leaning if you've got 15 employees. My suspicion is you probably are working with an accountant or you're at least working with a payroll company.And I suspect they've been tracking this. But if you're not tracking it now, now is the time to do that. So start tracking that qualified overtime.Now, even if you know you're not going to be able to get those on the W2 till we go to do the 20, 25 W2s, but have that information, you know, label those timesheets so you can pull that data later because at the worst case scenario, just start keeping track of that. Like I said, your payroll system should do this. If you've got a payroll provider, ask the payroll service to put in some custom fields for you.I know we've been working with QuickBooks, payroll and some other payroll platforms and they have this information ready to go. They don't have the forms because IRS hasn't issued the forms for them to put them on, but they have the data.So I'm not worried about the data on this overtime stuff. It's just my concern is how quickly can the IRS get the forms out? Because the IRS is notoriously late with this stuff. Get ahead of it. Update.Listen, here's another thing you can do. Update your employee handbook to reflect these changes so your employees understand. Here's what's going to be going on.Start early in doing this so that you can have clean records, so that when it comes time to do your W2s at the end of the year, you've got all the information ready. Somebody like me calls you and says, hey, it's time to do your W2s. We need to get this information.Have that information ready to go so you're not scrambling at the last minute trying to figure out what happened. All right, Tom. Well, let's move on to our fifth and final question for tonight. And this one comes to us from Lisa from Columbus, Georgia.And this is an interesting one. When I got this, I was like, I, you know, I'm not sure I'm gonna include it, but, you know, I'll do this.You know, she's sort of like, I'll say she's competition, but she's not really competition. But this is what Lisa said. She says, Ralph, I, I'm a bookkeeper for a few local businesses.So she kind of does what I do for some of my business clients here locally at my, my accounting firm. But she said, she says, how do I keep clients compliant without adding a ton of extra work?And Lisa, I feel your pain because there is some extra work involved with this. There's no way getting around that, but I'm gonna say in a minute.You know, the thing is there is extra work, but it might be an opportunity for you to increase your billing a little bit too as well.But one of the things I will tell you, Lisa, to do, and it's something we've done internally, standardize your processes, create sort of like a shared tip or overtime tracking template that you can give each of your employers so that they have something they can use. If you're using a payroll system, my suspicion is you already have that.If you've got some mom and pop shops who are still kind of doing payroll with the old book ligand, and if you've got some old school clients like that, this may be more of a challenge. So then build a spreadsheet for them. Build something that you can give them that breaks these things out.So as they're doing payroll weekly or bi weekly, they're keeping track of of these numbers into separate columns. So it's not a surprise surprise at the end of the term.One of the things I'm going to recommend that you do, Lisa, and I'm hoping you're already doing this, is use some automations, QuickBooks, QuickBooks, online, Gusto, payroll, paychecks, ADP. All these places have these built in fields that you can be using. I'm hoping you're already using.At least I suspect, based on the tone of your question, that you're a professional bookkeeper and you've got some systems in place. But if you don't, man, this is a great time to do that. And here's another thing. Educate your clients.This is a great time to build like a one page summary that explains their role, what they need to give you and explains what you need to do. And I wouldn't wait till the end of the year for this.This is a great time to reach out, maybe send them an email, send them this template that you're working on, but have some quarterly reviews to stay ahead of this so that you're not surprised or they're not surprised at the end of, hey, I got to get Lisa this information. Which leads me to this. Lisa, this is going to be more work. So this is an opportunity to say, listen, you know I've always charged you x for the W2s.Well, now we're going to have more work to do. You can upcharge for that because you got to be in compliance with this. Like I said, your employees are going to be really upset.Your client's employees are going to be really upset if they go to file their taxes and this information wasn't broken out the way it should have been broken out.So, Lisa, I think this is a very good opportunity for you to expand your professionalism and you can be that voice that they need to hunt, to stand, to know what they've got to do. So Lisa, I think it's a real good opportunity for you, but be aware, know what's going on.Another thing you can do, if you'd like to share this show with them, send them, hey, I got this guy Ralph, he does this, this show called Grit and Growth Business. Send it to your business clients. I'm not going to poach them from you. That's not my goal. But just to give them some information.You can subscribe to the irs. The IRS is putting out communications about this.They're talking about, because there's a lot that needs to be done between now and the end of the year to get ready for this. And They've said that 2025 is going to be a learning year.So they're not going to be pushing penalties for employers that didn't do the bookkeeping work.But this, but, but I don't want to Use that as an excuse because your employees are going to be super upset with you if all of a sudden they're going to file their tax. I know I've said this a couple times, but if they go to file their tax returns and the information is not there, they're going to be fired up.So you don't want to put yourself in, in that position. So I'm just going to encourage you that. All right. Well, I know we've covered a ton tonight and you know, there's a lot to this. I get it.You know, and it's, it's sort of a, a massive change and for a lot of people it probably hits pretty close to home because a lot of people, and I see this more and more. It's funny, whenever we do service industry people now, it seems like every time I get an invoice, there's a place to leave a tip.So a lot of people have overtime, a lot of people have tips. If you want to go deeper, like I said at the beginning of the show, we do have this new community. It's gritngrowthbusiness.com join again.It's super simple. You just go right to that website. It's actually a Patreon group.You just put in your email address, put in your name and you remember that you can take part in the chat. Abby, my producer, has been putting the action sheets out there.We'll put an action sheet for tonight's episode on it and you're going to get access to all the cool things that we put on the inside of this where we're doing some, some simple one page checklist to help you ready for the tax all.If we hear things going on with the irs, we'll put it out there so everybody knows what's going on because there's a place where you can discuss with other business owners. You can ask questions, you can give me ideas for the show. I'd love to hear your ideas for the show.Share your win, share the things that are struggles for you and really connect with other owners who are trying to do the same thing you are and that is grow their business through grit and determination. And listen, if you want some professional help, you can also do some professional work over there with me. You can book a discovery call with me.I'd love to talk to you. I give you a 15 minute, absolutely free, no strings attached consultation.Tell me about your business, tell me what's going on and let me see if I can work with you. We work with clients all over the world. I am certain that I can help you. But you can do that right through that as well.Book a free discovery call with me because let's go, let's grow together because business gets a whole lot easier when you don't have to do it alone. That's one of the reasons I do this show. A lot of people say, Ralph, you know, why do you do so much content stuff?Well, I want to see people be successful. I truly do. Because if it's, it's a win win, if your business is growing, then you're going to need people like me to help you grow your business.So I truly believe it's a win win.Well, let's take a few minutes and just recap what we covered tonight because I know there was a lot of details in there, but I want to make sure nobody missed anything. We covered the new overtime and tip and tip tax law. Let me say that three times. It's I'm tired. It's been a long day.So I apologize, tripping on my words. But I really want you to understand what this means for small business because I think this is going to be massive.But you've got to prepare for this right now because the law isn't automatic savings. It's really strategic planning. Like I said, it's not going to happen right now.But let me tell you right now, when your employees go to get their taxes done in January, February, March, and they get a big refund or they don't owe quite as much, they're going to really be helped. They're going to be thankful that you put these things in place to give them the information they needed to save on taxes.So start that tracking now, stay compliant and use it as a way to strengthen your team and improve your books because this can really help. And maybe you're a small business person and you get paid tips yourself.Well, keep track of that because you're going to be able to take that deduction away. A lot of people don't realize that it's not just for employees.If you are a service provider business, let's say you don't have any employees, it's just you. You're going to be able to record those tips and also take a deduction for now.Now how we're going to do that again, that's still in the IRS trying to figure out stage. I'm not sure how they're going to do it, but we're going to figure out something. We also talked about some listener questions today.We talked about what qualifies for tips? We talked about they need to be reported. So make sure we reporting those because they're not qualified if they're not on the W2.We talked about overtime. We talked about how did they need to be recorded. We talked about communicate with your employees.And Lisa, I helped you with some bookkeeping efficiency. I hope that was really helpful with you. And if you missed anything, here's the best part of this great and quote live show.As soon as we hit, as soon as we're done recording, you can catch the replay. You can watch it 10 times if you want to. And also I'm going to encourage you again, go get my action sheet.That's@gritngrowthbusiness.com join one more time. That's gritandgrowthbusiness.com join. It'll be in the show notes. So, friend, I just want to thank you so much for being part of this movement.I thank you for coming out and joining us live.If you're not catching us live, if you're catching us on the replay, thank you so much for being involved because every week I want to bring you ideas and topics to help you grow your business and do it with confidence. Because remember, this grit builds growth and growth builds freedom.So I'm going to see you again next Tuesday night right here on Grit and Growth Business live. God bless you and you have a great night tonight.