United StatesEmployers would exclude athletic workers from one tax deduction test
For tax years beginning after December 31, 2026, employers would skip athletic workers when selecting five highly paid employees for limits on deducting pay.
What it does
Employers would exclude athletic workers from the five-highest-paid employee test for tax write-offs on pay, starting with tax years beginning after December 31, 2026. Other employee categories would still apply.
Argument forThe exclusion could keep athletic-worker pay outside this deduction limit when no other covered-employee category applies, allowing employers to deduct that pay.
Argument againstSelecting five employees without athletic workers could bring other highly paid staff under the deduction limit, restricting employers’ write-offs for their pay.
More detail
Employers would exclude athletic workers when identifying the five highest-paid employees for this pay deduction limit. The exclusion would cover workers providing athletic services under the federal tax definition cited in the bill. Other categories of employees covered by the deduction limit would still apply. The amendments would apply to tax years beginning after December 31, 2026.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Oct 1Introduced in HouseLatest
- Oct 1Referred to the House Committee on Ways and Means.Introduced
Taxes & Budget