Month: August 2025

Categories
Cybersecurity

Your Biggest Cybersecurity Risk Might Be on Your Payroll

By Jon Joyner, Cybersecurity Practice Leader and Traci Tyler, HR Advisory Practice Leader

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The Top Line 

While firewalls and threat detection software are essential, technology alone cannot protect your business. For small and midsized businesses, employees are often the weakest link in your cybersecurity posture. Whether it is a misplaced phone, a poorly handled password, or a missed offboarding step, human behavior consistently opens the door to data breaches. 

To build a secure business, leaders must treat cybersecurity as a cultural issue—not just a technical one. 

 

  1. Cybersecurity Is a People Problem

What it means for you:
Most cyber incidents stem from employee actions, not software flaws. Common risks include weak passwords, lost devices, or failing to recognize phishing attempts. Remote work and mobile tools further complicate oversight. 

Strategic takeaway:
Technology policies must be paired with behavior-focused strategies. Cybersecurity begins with employee awareness and accountability. 

 

  1. Training Is Only the Beginning

What it means for you:
One-time training modules are not enough. Without real context or reinforcement, employees may forget policies or disregard them entirely. 

Strategic takeaway:
Make cybersecurity training an ongoing part of the employee experience and enforce expectations through consistent leadership follow-up. 

 

  1. Secure Every Step of the Employment Lifecycle

What it means for you:
Cyber risk starts on day one and lasts until access is fully revoked—often even longer if proper offboarding steps are missed. 

  • Onboarding: Introduce clear acceptable use policies and define access limits. 
  • During employment: Monitor permissions regularly and provide timely risk updates. 
  • Offboarding: Immediately disable all access, especially for personal devices or cloud-based accounts. 

Strategic takeaway:
Build a joint process between HR and IT to manage access from start to finish. 

 

  1. Mobile Devices Are a Major Blind Spot

What it means for you:
Employees commonly access work email or apps from their personal phones, often without safeguards. Without mobile security policies, your data could be exposed with no way to retrieve or remove it. 

Strategic takeaway:
Implement mobile device management (MDM) software to isolate and protect business data on personal phones. 

 

  1. Leadership Sets the Tone for Cybersecurity Culture

What it means for you:
Executives and managers must treat cybersecurity as a business responsibility, not just an IT function. Roles with elevated access—such as payroll, HR, or operations—require regular audits. 

Ask yourself: 

  • Are access levels reviewed regularly? 
  • Are security policies up to date and enforced? 
  • Is accountability tied to employee performance? 

Strategic takeaway:
Leadership must model secure behavior, communicate risks clearly, and make cybersecurity a team-wide priority. 

 

Final Thought 

The strongest technology will still fail without the right human safeguards in place. For businesses looking to grow securely, cybersecurity must be built into every role, every process, and every level of the organization. 

Schedule a Consultation 

ATA’s advisors can help you assess your human risk exposure and implement practical solutions that protect your business from the inside out. Schedule a consultation today to build a more secure culture for your team. 

Categories
General

New Tip and Overtime Reporting Rules for Employers under OBBBA

What Employers Need to Know for Tax Years 2025 through 2028 

By Charles Peery, CPA | Business Tax Practice Leader

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The One Big Beautiful Bill Act (OBBBA) introduces new federal reporting rules for businesses that employ tipped workers or overtime eligible staff. Effective for tax years 2025 through 2028, these changes emphasize wage transparency without drastically altering enforcement or eligibility rules. Instead, employers are expected to meet new documentation standards, especially for tip income and overtime premium pay. This article outlines the key provisions and best practices to help your business stay compliant and prepared. 

 

  1. Annual Tip Reporting Requirements

The OBBBA enhances annual wage reporting required for tipped employees but does not mandate real time or per pay period submissions. 

Key changes include: 

  • Employers must report the total qualified tips received by each employee on Form W-2, along with their qualifying occupation. 
  • Qualified tip income includes cash tips, credit card tips, and pooled tips that are voluntary and customary. 
  • Mandatory gratuities and service charges are not included. 
  • The existing rule that employees must report all tips to employers by the tenth of the following month remains in place. 
  • No changes were made to existing federal rules on tip pooling. 
  • A new deduction allows employees to exclude up to 25,000 dollars of qualified tip income annually. The deduction begins to phaseout once modified adjusted gross income exceeds 150,000 dollars for single filers and 300,000 dollars for joint filers. 
  • Workers may claim the deduction regardless of whether they itemize deductions or claim the standard deduction.  

Strategic takeaway: Ensure your payroll system supports detailed end of year tip tracking and that your employees understand their responsibilities. 

  1. Best Practices for Verifying Tip Income
  • Keep detailed records: Encourage employees to log tips daily and keep employer copies of all reports for at least four years after the tax deadline. 
  • Participate in IRS tip agreements: Consider agreements such as TRDA, TRAC, or GITCA for added compliance support. 
  • Train employees: Provide training on tip policies and include written guidance in your employee handbook. 
  • Use technology: Electronic tracking tools can help automate reporting and provide tax summaries for employees. 

 

  1. Overtime Reporting for a New Deduction

Although the OBBBA does not change who qualifies for overtime under federal law, it does introduce a new deduction for the premium portion of qualified overtime pay. 

Key provisions include: 

  • Only the additional half time pay required by federal law qualifies. 
  • State mandated or contract-based overtime does not qualify. 
  • Employers must report qualified overtime premium pay separately on Form W-2. 
  • Employees can deduct up to $12,500 individually or $25,000 jointly. The deduction phases out for single filers with MAGI over $150,000 and joint filers with MAGI over $300,000. 
  • The overtime deduction is available to both itemizers and nonitemizers.   
  • No additional enforcement, attestation, or documentation mandates have been introduced. 

Strategic takeaway: Your payroll system must be able to isolate and report the qualifying overtime premium amounts accurately. 

  1. Best Practices for Overtime Pay Documentation
  • Implement reliable time tracking: Use time clocks or software that accurately captures hours, breaks, and overtime. 
  • Separate overtime premium pay: Payroll systems should be configured to track the extra half time pay separately for reporting. 
  • Retain supporting documents: Maintain records of timecards, payroll reports, and communication regarding compliance. Assign responsibilities clearly between departments to improve oversight. 
  1. IRS Compliance and Internal Controls

Participating in IRS tip programs like TRDA, TRAC, or GITCA can reduce audit risk and help demonstrate good faith compliance. Employers in these programs are required to submit annual reports on tip income and hours worked. 

Strategic takeaway: Establish strong internal controls and update your policies and procedures to align with OBBBA standards. 

Schedule a Consultation 

Now is the time to assess your payroll systems and reporting practices. Schedule a consultation with your ATA advisor to prepare for the 2025 reporting season and reduce the risk of penalties. Our team can help you stay compliant and confident under the new law. 

Categories
General

Why a Mid-Year Check-In with Your Accountant Matters

By Mark Puckett , CPA | Tax Principal 

The halfway point of the year isn’t just a time to reflect, it’s a smart opportunity to reset. A mid-year check-in with your accountant helps you evaluate progress, respond to changes, and strategically plan for what’s ahead. Whether you’re an individual, a business owner, or a nonprofit leader, this proactive step can prevent surprises and position you for a strong year-end finish. 

Get Ahead of Potential Issues 

Waiting until year-end to discover financial gaps or tax surprises can leave you with limited options. Meeting with your accountant now gives you time to address concerns while there’s still room to act. Common topics include tax estimates, income or deduction changes, cash flow shifts, and budget variances. Catching these early allows for more flexibility and peace of mind heading into Q4. 

Make the Most of Tax Strategies 

Tax laws continue to evolve, and the earlier you plan, the better your chances of maximizing savings. Your accountant  can help you assess the potential impact of new tax law changes on your specific situation. By working together to discuss your ongoing plans, you have a much better opportunity to take advantage of the tax laws. With half the year behind you, projections based on real numbers make your decisions smarter and more impactful. 

Check In on Business Health 

For business owners, a mid-year financial review is essential. Your accountant can analyze your year-to-date numbers, compare them to forecasts, and evaluate performance indicators such as margins, expenses, and cash flow. These insights can guide decisions around pricing, hiring, capital purchases, and goal setting for the remainder of the year. 

Stay Aligned and Compliant 

This check-in also ensures you’re staying on top of compliance, whether it’s sales tax filings, payroll reports, or estimated payments. Nonprofits can use this time to review grant tracking, audit readiness, and mission alignment. Individuals may want to discuss life events like a marriage, new child, or property purchase that could affect their tax picture.  

Be Proactive 

A mid-year conversation with your accountant is more than a check-in, it’s a strategic move to stay informed, adaptable, and confident. Don’t wait for year-end stress. Reach out to your ATA advisor today and make sure you’re on track to finish the year strong.