July 10, 2025
Explore tax updates, payroll policy changes, and upcoming webinars to optimize your business operations.
Taxes Tab in Console
We’re excited introduce an updated version of the “Taxes” tab in Console that displays a table of taxes that are applicable to the company. You can filter this table to see the list of taxes that are applicable to a specific employee or workplace.
The table also provides new information about what drives taxes to be applicable. For example, you’ll be able to see whether a tax is applicable based on an employee’s residence location, workplace, or primary workplace.
This information makes it easier to understand the tax profiles for companies, employees, and workplaces, and the rules that drive them.
Upcoming Policy Change: How Failed Fundings Impact In-flight Payrolls
On Thursday, July 17th, we will be introducing an update to when and how failed fundings impact processing of other in-flight payrolls for a company. Note: this policy is only applicable to Standard Risk Tier partners, per our Credit policies.
Today, when a company experiences a failed funding, all of their other in-flight payrolls immediately stop processing, and they remain in a “processing” status indefinitely until the failed funding is resolved and they are manually resumed by Check Support. This is especially burdensome for companies who commonly approve payrolls many days in advance of their paydays, as processing for those future payrolls are stopped even if the failed funding was resolved in a timely fashion.
Going forward, when a company experiences a failed funding, their other in-flight payrolls will not be impacted immediately and instead will be stopped at 9am ET on their approval deadline day, when debits for payrolls begin. At that point, if the company still has not resolved their outstanding failed funding, the payroll will move to a “failed” status and will not be processed.
This update gives companies the opportunity to completely avoid impacting the processing of other in-flight payrolls if they resolve their failed funding in a timely fashion. It also allows companies and partners to more easily identify payrolls that have been impacted by a failed funding and self-serve their recovery.
For more information about this policy change and failed fundings in general, refer to Failed Funding Guide in our Help Center.
Upcoming Webinars Sign Up
Check’s Summer School continues next week with Setup 101! Later this summer, we have webinars on Payroll 201, Risk & Payments, and Setup 201.
Sign up here and share the link with your teams.
No Tax on Tips and Overtime
President Trump's Big Beautiful Bill was signed into law on July 4, 2025, and it comes with two major tax changes. Starting in the next tax filing season, workers will be able to deduct up to $25,000 in tip income and up to $12,500 in overtime pay from their federal taxable wages when filing their tax return.
These tax changes are implemented as end-of-year deductions, NOT payroll tax exemptions. This means that tipped employees won’t immediately see bigger paychecks, and payroll tax calculations won’t be changing. Here's how it works:
- Employees still report all tips and overtime wages to their employer.
- Employers will continue to withhold federal income tax, Social Security tax, and Medicare taxes based on regular wages, plus overtime and tip income.
- When employees file tax returns for the year (e.g., in early 2026 for the 2025 tax year), they will claim the deductions for qualifying tip and overtime income.
- The deductions will reduce taxable income, which in turn can lead to a lower tax liability and a larger refund of federal income taxes that were withheld during the year.
- These provisions expire after the 2028 tax year, only apply to federal income tax (state income taxes are not impacted), and do not apply to workers earning over $150K/year.
Check will continue to closely monitor the rollout of these new rules to keep our partners in full compliance.