At the Country Gables Cafe in Roseville, waitress Jessica Burrus says the change could be a real relief.
Under the law, the first $25,000 of tips a worker earns, along with up to $12,500 in overtime pay, will be tax-deductible, so long as the worker's total income stays under $150,000 a year.
"It's exciting to see what the end of the year is going to look like," Burrus said. "Over the previous years, I've owed quite a bit, and so hopefully this can go in a college fund instead."
There's still a catch
"They're still going to pay other taxes, whether it's state taxes, Social Security, or Medicare," explained Sanjay Varshney, Professor of Finance at Sacramento State. "But they can deduct a certain amount from tips and overtime when calculating what's taxable."
"No taxes, that's pretty good for my employees, and they generate quite a bit of tips, so it's going to help them a lot," Thao said.
Who benefits most?
The law takes effect immediately, applying even to tips workers have already received this year.
For many service workers, it means a little more financial breathing room and the chance to save for things like college, retirement, or just everyday expenses.
Read More Details
Finally We wish PressBee provided you with enough information of ( Roseville cafe workers say "Big Beautiful Bill" could give tax relief for tipped employees )
Also on site :