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Bill

Bill

S 4310

No Tax on Overtime for All Workers Act

119th Congress Introduced by Maria Cantwell and 1 co-sponsor

The bill would create a deduction for overtime compensation, reducing taxable income or tax owed for eligible overtime wages.

Introduced in Senate
0
WeVote Research Nonpartisan
Bill Summary · S 4310

Summary of Bill: S. 4310 (119th Congress)

Purpose and Intent

  • To amend the Internal Revenue Code of 1986 to allow a deduction for certain overtime compensation.
  • The bill aims to provide tax relief to employers or employees by permitting a tax deduction related to overtime pay, helping to offset the cost of compensating workers for overtime hours.

Key Provisions (Overview)

  • Introduces a new or modified deduction specifically tied to overtime compensation.
  • The deduction would be taken against tax liability under the Internal Revenue Code, reducing taxable income or tax owed for eligible overtime payments.
  • The text as introduced specifies criteria for what qualifies as “overtime compensation” and the mechanics of the deduction (e.g., limitations, phase-ins, interaction with other deductions or credits).
  • The bill designates the period for which overtime qualifies (typically the tax year) and may outline documentation or reporting requirements for taxpayers claiming the deduction.

Who Would Be Affected

  • Employers who incur overtime compensation costs and wish to claim a deduction will be directly impacted.
  • Employees receiving overtime pay could indirectly benefit through maintained or enhanced employment incentives, though the deduction is generally a business tax provision rather than an employee tax credit.
  • Taxpayers with significant overtime-related payroll expenses in relevant industries (e.g., healthcare, manufacturing, transportation) are most likely to be affected.

Procedural and Timeline Aspects

  • Introduced in the Senate and referred to the Committee on Finance (April 15, 2026).
  • The sponsor listed is Jim Justice (co-sponsor), indicating initial bicameral or collaborative support, but no House action is shown in the provided history.
  • Committee action will determine whether the bill advances to floor consideration, markup, and potential amendments.

Practical Impact and Considerations

  • If enacted, the deduction could lower corporate or individual tax liabilities related to overtime wages, potentially encouraging hiring or overtime work in certain sectors by reducing after-tax costs.
  • The net fiscal impact would depend on the deduction’s size, how broadly it applies, and any offsets or interaction with existing credits and deductions.
  • Administrative requirements (recordkeeping, eligible wage definitions, and proof of overtime) will shape how easily taxpayers can claim the deduction.

If you’d like, I can tailor this summary to a specific audience (e.g., policymakers, business owners, or tax professionals) or add hypothetical example calculations to illustrate potential tax effects.

Compiled from official sources — confirm details with the bill’s official record.

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