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IRS and Treasury are making progress on the rule making from OBBBA. IRS has published their proposed rule on income tax on tips. The primary focus of the regulation is defining qualified tip and occupation. This is not firm and final; the proposal is open for public comment. If you have a strong opinion, engage!
Attached is the proposal from the federal register. Some of the definitions get fairly technical specifically with what is considered an “occupation that customarily and regularly receives tips”. For the most part, the IRS defaulted to the FLSA on their definition.
Also attached is draft example of 2026 W2. This include the 12a classifications that have to be reported on cash tips and qualified overtime. The forms too, are out for comment.
Key provisions on REG-110032-25
Effective dates: The deduction for qualified tips is available for tax years beginning after December 31, 2024, and before January 1, 2029. The proposed regulations apply during this period.
Eligible occupations: (see page 11 of reg) The regulations include a list of nearly 70 occupations that customarily and regularly received tips as of December 31, 2024. These occupations, which include categories such as food and beverage, hospitality, personal services, and transportation, are identified using new Treasury Tipped Occupation Codes.
Qualified tips: The NPRM defines "qualified tips" as those paid voluntarily by the customer, in cash or an equivalent electronic form, and not subject to negotiation. Service charges do not qualify. IE: catering tips and parties over 5 mandatory tips.
Deduction limitations: The maximum annual deduction is capped at $25,000. This amount begins to phase out for taxpayers with modified adjusted gross income exceeding $150,000 ($300,000 for those filing a joint return). The deduction is not available for married individuals who file separately.
Exclusions: Tips received in connection with an illegal activity or from an individual with an ownership interest in the business do not qualify for the deduction. Tips received by performing artists operating a Specified Service Trade or Business (SSTB) are also excluded, unless the artist is an employee. Automatic service charges are generally not considered qualified tips.
-An example of illegal activity in the reg says that if a bartender is required to have a license to serve alcohol and earns tips while unlicensed, those are not qualified under the exemption.
FICA taxes: Importantly, the NPRM clarifies that employees who claim the deduction must still pay Social Security and Medicare payroll taxes (FICA) on their tip income.
Comments and public hearing: The proposed regulations were published on September 22, 2025. The IRS and Treasury are accepting public comments on the proposal until October 22, 2025, with a public hearing scheduled for October 23, 2025.
Flint Hills SHRM Honored for Elevating HR and Enhancing Workplaces Receives SHRM’s Prestigious 2024 Gold Excel Award
Manhattan, Kansas — May 9, 2024 — SHRM has awarded the 2024 Gold Excel Award to Flint Hills SHRM in recognition of its exceptional work and accomplishments in 2024. This award celebrates the Chapter’s strategic initiatives, innovative programming, and unwavering commitment to elevating the HR profession and improving workplaces across the region.
The Excel Award—given at the Bronze, Silver, Gold, and Platinum levels—is a symbol of excellence in chapter and state council leadership. Honorees are recognized for activities that align with SHRM’s mission to empower people and workplaces by advancing human resource practices and maximizing human potential.
“SHRM’s impact on the world of work is made possible by the dedication and leadership of our chapters and state councils,” said Johnny C. Taylor, Jr., SHRM-SCP, president and chief executive officer of SHRM. “The Gold Excel Award is not only a celebration of the great work done by Flint Hills SHRM it’s recognition of their focus, innovation, and determination to create better workplaces. Their HR leadership is truly exemplary.”
Flint Hills SHRM will receive national recognition through SHRM publications and events, an official award logo for use in communications, and tools to help share this achievement with its members and community.
In 2024, Flint Hills SHRM led several impactful initiatives, including evaluating DMR to support long-term sustainability and enhance the member experience, hosting monthly HR Happy Hour events focused on timely HR topics to drive member engagement, and sponsoring student attendance at the KS SHRM Student Conference in Wichita. These efforts strengthened our connection with future HR leaders and supported the growth and success of HR professionals and organizations across the Flint Hills Region.
For more information about Flint Hills SHRM, visit Flint Hills SHRM.
We strive to keep all our Human Resource Professionals informed of the latest updates and announcements as they may affect our workforce during these times of unprecedented events.
H.R. 6201 – Families First Coronavirus Response Act
Prepared 03/17/2010 – This has not yet been signed into law. It has passed the House but remains with the Senate at the time this was prepared.
Introduced in the House: 03/11/2020
You can follow the bill status at:
https://www.congress.gov/bill/116th-congress/house-bill/6201
HR 6201 Families First Coronavirs Response Act.pdf
Volunteer Sign-up
Please sign up for the many 2020 KS SHRM Student Summit Volunteer Opportunities!
Volunteer Role List
To Sign up for your volunteer role, go to: https://ksshrm.org/student-summit/
March 27, 2020, the Boys & Girls Club of Manhattan is holding their 21st Annual Casino Night. This event is their largest fundraiser and helps the support over 2,800 youth who attend programs in Manhattan and Wamego.
They have asked if our Human Resource Management Network members will be the Silent Auction "Table Security" during the event!
We will need a minimum of 5 and up to 8 members to assist at the Silent Auction table through the end of the bidding and distribute the items to the bid winners. If you can help for only a portion of the night, we will greatly set up shifts for those that need to leave early or arrive late!
Please consider this great volunteer opportunity to support our community and area youth.
Please email Cindy Volanti, HRMN President, to sign up! cvolanti@rileycountyks.gov
Date: March 27, 2020
Time: 6:00 PM - 11:00 PM
Location: K-State Alumni Center
Address: 1720 Anderson Ave Manhattan, KS 66506
Join us as we discuss the challenges of balancing between developing relationships and operating in a technological environment.
This meeting is being offered in combination with KSU SHRM. We'll meet at the end of the day to learn, network and eat Call Hall ice cream at the K-State College of Business building!
Objectives for the meeting:
Time and Date: 10/16/2019 - 3:30 PM - 5:00 PM
Our Speaker: Donita Whitney-Bammerlin, Kansas State University
HELP KSU SHRM GIVE BACK
We are requesting your assistance. As the KSU SHRM Chapter and the local HRMN Chapter join together for this month’s meeting, we figured this would be a good opportunity to also come together and give back.
The KSU SHRM Chapter has decided to put together military care packages to send overseas. Here is how we, as a Professional Chapter, can help the Student Chapter as well give back to those currently serving our country.
We are requesting donations to help contribute to the care packages. Various items are being sought such as AA/ AAA batteries, USBs, hygiene products (shampoo, deodorant, razors, mouth wash, etc), packaged food (such as protein bars, cookies, crackers, dried fruit, hard candy, nuts but not peanuts), and basic Visa or Mastercard gift cards (for WiFi, food, etc.).
Donations may be brought to the October joint meeting. If you are unable to attend the meeting but would still like to contribute, please reach out to Kaitlynn Bachman, College Relations Liaison, at kaitlynnb@centralnational.com.
All items are needed before November 12th as packages will be compiled then. Any and all donations are greatly appreciated!
JOIN US FOR OUR ANNUAL MEETING
GALLUP CLIFTONSTRENGTHS DEVELOPMENT TRAINING
Everyone wants to reach their fullest potential. To do this, you must move your talents to performance. Through identifying and applying your strengths, Gallup studies show you are:
Join us as we learn how to leverage Strengths to improve both our lives and employee engagement!
Date: November 6, 2019 from 8 AM to 2 PM
Location: Four Points by Sheraton at 530 Richards Drive, Manhattan KS
Your registration includes:
The Fort Riley Army Community Service, Employment Readiness Program and Education Services would like to invite you to participate in this year’s Hiring & Education Fair.
The Hiring & Education Fair is November 7, 2019 from 10:00am-2:00pm at Riley's Conference Center, 446 Seitz Drive, Fort Riley, Kansas, 66442.
This event brought in over 300 participants last year!
For more information, please review this flyer.
It is time to nominate your Human Resource Management Network Super Hero for 2019!!! Please visit our HRMN website to complete your nomination form for the HR Professional who exemplifies HR-related Super Hero Qualities! To qualify, a nominee must be: A human resource professional for a minimum of one year. Students are eligible only if they meet the one year requirement. Working in the human resource field at the time of the nomination. Actively participating in local, regional, national and/or international HR-related activities. There is no limit to the number of times a nominee may be nominated. Nominate your Super Hero at https://www.hrmn-shrm.org/superhero
It is time to nominate your Human Resource Management Network Super Hero for 2019!!!
Please visit our HRMN website to complete your nomination form for the HR Professional who exemplifies HR-related Super Hero Qualities!
To qualify, a nominee must be:
Nominate your Super Hero at https://www.hrmn-shrm.org/superhero
Your HRMN Membership will expire at the end of the year. Renew today! Log in to your profile at https://www.hrmn-shrm.org/Sys/Profile to get started. Membership renewals that are received prior to 12/31/19 will be eligible for the drawing we have for an annual SHRM membership - that's a $209 value!
Your HRMN Membership will expire at the end of the year. Renew today!
Log in to your profile at https://www.hrmn-shrm.org/Sys/Profile to get started.
Membership renewals that are received prior to 12/31/19 will be eligible for the drawing we have for an annual SHRM membership - that's a $209 value!
Unable to make a meeting? Or, want to watch one you attended (like last month's Legislative Session with Natalie Bright?)
Recordings are now available for you to view by logging into your account on our website.
You can view recordings at the Member Resources page.
Help us plan for our 2020 Programs!!!
Please provide input through this survey for topics you would like to hear about during our monthly Chapter meetings. Your input is of great value and want to hear from you!!!
Know someone we should listen to? Have a topic suggestion?
Fill out our Topic Survey
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Affiliate of Society for Human Resource Management, Chapter #662 "Human Resource Management Network" is a 501(c)6 non-profit organization.
