New occupational tax 2026

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  1. Click ‘Get Form’ to open the New Occupational Tax Application in the editor.
  2. Begin by filling out the 'Type of Business' section. Select the appropriate option such as 'New/Commercial' or 'Sole Proprietor'.
  3. Enter your Federal Employer Identification Number (FEIN) and Sales/Use Tax Number if applicable.
  4. Provide your business name, address, and contact information in the designated fields.
  5. In the 'Description of Business Activity' section, clearly outline what your business does. This helps in determining your tax class.
  6. If applicable, complete the Home Occupation section by providing details about your home-based business operations.
  7. Review all entered information for accuracy before submitting your application through our platform.

Start using our platform today to effortlessly complete your New Occupational Tax Application for free!

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Employers should know about the new overtime rule for the upcoming tax year. A new rule allows eligible employees to deduct up to $12,500 from their federal taxable income, or $25,000 for those filing jointly. Employers must accurately track and report qualified overtime compensation through their payroll systems.
oc​cu​pa​tion tax. ˌ-kyə-ˈpā-shən- : an excise imposed on persons for the privilege of carrying on a trade, business, or occupation.
Occupation tax means a tax levied on persons, partnerships, corporations or other entities for engaging in an occupation, profession or business for revenue raising purposes.
Along with no tax on tips and tax relief for Social Security, no tax on overtime fulfills President Trumps commitment to put hardworking Americans first. At the same time, pro-growth tax policies in The One, Big, Beautiful Bill and fairer trade will spur more domestic production and manufacturing.
The new overtime tax deduction is a federal tax deduction for employees for qualifying overtime pay that began in 2025, continuing to 2028. This provision allows for employees to take a federal tax deduction of up to $12,500 or $25,000 if filing joint for the premium part of the overtime pay.

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Overtime pay is compensation for employees who work more than the standard number of hours in a day or week, often at a higher rate, as required by federal and state laws. Overtime pay is taxed at the same rate as regular pay, with no special payroll or federal overtime tax rate.
The Occupation Tax is authorized by the Local Tax enabling Act, and is levied on all residents 18 years of age and older. It is based on a persons job title, NOT INCOME.
Starting January 1, 2025, a designated amount of qualifying overtime pay will be exempt from federal income tax under the One Big Beautiful Bill Act (OBBBA). You can deduct up to $12,500 (for most filers) or $25,000 (Married Filing Jointly) in overtime pay from your taxable income.

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