New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Genesco Workers and the New No Tax on Tips Rule What You Should Know

Healthcare Provider Update: For Genesco, the healthcare provider is primarily through Aetna, which is part of CVS Health and provides a range of health insurance plans and services tailored to meet the needs of Genesco employees and their families. In 2026, the healthcare landscape could see significant challenges for Genesco due to anticipated insurance premium hikes driven by multiple factors. With the potential expiration of enhanced federal subsidies for Affordable Care Act (ACA) plans, over 22 million Americans could face out-of-pocket premium increases of more than 75%. In addition, rising medical costs, including hospital and prescription drug prices, are expected to further burden employees, potentially leading Genesco to reconsider its benefits strategy, such as shifting more costs onto workers to mitigate rising expenditures. These cumulative factors suggest a critical need for strategic planning in navigating the financial impact of healthcare in the coming year. Click here to learn more

'“Genesco employees may benefit from reviewing how the new tip deduction rules fit into their broader household planning, as thoughtful preparation can make a meaningful difference,” – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

'“Genesco employees can use the new tip deduction rules as a reminder to review their overall income strategy and stay informed as guidance evolves,” – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

How the new “No Tax on Tips” law works for eligible employees.
Income limits, qualifying occupations, and deduction rules.
How Genesco households may evaluate these provisions for planning purposes.

Some Employees May Retain a Greater Share of Their Wages

Eligible employees may deduct up to $25,000 in qualified, voluntary tips from their federal taxable income under a new federal tax rule that took effect on July 4, 2025. ¹ Genesco workers in eligible service-related roles may want to stay informed about these changes.

- The deduction applies to tax years 2025 through 2028.

- Income earned as tips is not taxable up to $25,000, however the deduction phass out for joint filers with Modified Adjusted Gross Income (MAGI) above $300,000 and single filers above $150,000. ²

What Does “No Tax on Tips” Mean?

A new provision under the One Big Beautiful Bill Act called “No Tax on Tips” permits eligible employees to deduct as much as $25,000 in voluntary tips from federal taxable income, provided that IRS qualifications are met. Voluntary tips do not include mandatory service charges.

To qualify, an employee must work in a profession the IRS and Treasury Department define as “customarily and regularly receiving tips.” A preliminary list includes roughly 70 job types, including:

- Food and beverage service
- Events and entertainment
- Guest services and hospitality
- Home repair and maintenance services
- Personal services
- Personal well-being and appearance
- Recreation and education
- Delivery and transportation

Health care, sports, and performing arts positions are excluded because these roles are not considered to receive tips regularly.

Did No Tip Tax Pass?

Yes. This provision became law on July 4, 2025 as part of broader federal tax reform, which may interest Genesco employees with members in eligible occupations.

How Does No Tip Tax Work?

Employees in qualifying roles may deduct up to $25,000 in voluntary tips from gross income. Key points:

- The deduction phases out for single filers at $150,000 MAGI.
- It begins phasing out for joint filers at $300,000 MAGI.
- It applies whether the taxpayer uses the standard deduction or itemizes.
- It is available from 2025 through 2028.

For example, a restaurant server in the 22% tax bracket who receives $20,000 in qualified voluntary tips may reduce their federal income tax by up to $4,400 if IRS requirements are met. This may be meaningful for households that include Genesco employees.

When Does Tipping Become Tax-Free?

The deduction begins with the 2025 tax year, meaning eligible employees can claim it when filing their 2025 federal return in early 2026. This timing may matter for Genesco employees managing household tax considerations.

Does This New Law Make Tips Entirely Tax-Free?

Qualified voluntary tips (up to $25,000) may be deducted from federal taxable income if the employee meets the occupation and MAGI rules. However, employees—including those in Genesco households—may still owe:

- State income taxes
- Local income taxes
- Social Security and Medicare taxes
- Taxes on tips in excess of $25,000

Is the No Tax on Tips Rule Limited to Cash Tips?

No. Voluntary tips received by cash, credit card, or tip pool may qualify. Required service charges do not. This distinction is important for Genesco households with individuals in service-based roles.

How to Make a Deduction Claim

Eligible employees can claim the deduction by referring to IRS instructions:

1. Report all earnings, including tips, on Form 1040, line 1a.

2. Complete Schedule 1-A, for deductions such as qualified tips and overtime.

3. Report total additional deductions on Form 1040, line 13b.

Employees may deduct only the qualified voluntary tips actually received, up to the $25,000 limit. Genesco employees should remember that eligible tips must still be properly reported for payroll tax purposes.

More Guidance Is Expected

The IRS and Treasury Department will release additional information. Because each household's situation differs, individuals—including those working at Genesco—may want to speak with a qualified tax professional for personalized questions.

What Is No Tax on Overtime?

Another provision within the 2025 law allows eligible employees to deduct qualifying overtime pay from federal taxable income—up to $12,500 for single filers or $25,000 for joint filers. ¹ The MAGI phase-out thresholds are the same as the tip deduction. This rule also covers 2025 through 2028, which may influence planning for Genesco households evaluating income timing.

Do You Need Assistance Navigating These New Tax Laws?

The Retirement Group can help Genesco employees understand how these deductions may influence their retirement planning approach. You can speak with a representative by calling (800) 900-5867 .

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Sources:

1. Internal Revenue Service. “One, Big, Beautiful Bill Provisions.” IRS , 2025, www.irs.gov/newsroom/one-big-beautiful-bill-provisions .

2. Fidelity Investments. “No Tax on Tips: A New Deduction Explained.” Fidelity Learn , 19 Nov. 2025, www.fidelity.com/learning-center/personal-finance/no-tax-on-tips .

3. Lautz, Andrew. “How Does ‘No Tax on Tips’ Work in the One Big Beautiful Bill?” Bipartisan Policy Center , 30 July 2025, bipartisanpolicy.org/explainer/how-does-no-tax-on-tips-work-in-the-one-big-beautiful-bill. Accessed 8 Dec. 2025.

4. “‘No Tax on Tips’ Explained.” TaxSlayer Support , TaxSlayer, 2025, support.taxslayer.com/hc/en-us/articles/40291875700749--No-Tax-on-Tips-Explained. Accessed 8 Dec. 2025.

5. Mahoney, Michael K., and Stephen Kenney. “New IRS Guidance Pinpoints How Individuals May Take Tax Breaks for Tips and Overtime.” Ogletree Deakins , 21 Nov. 2025, ogletree.com/insights-resources/blog-posts/new-irs-guidance-pinpoints-how-individuals-may-take-tax-breaks-for-tips-and-overtime. Accessed 8 Dec. 2025.

What is the primary purpose of Genesco's 401(k) Savings Plan?

The primary purpose of Genesco's 401(k) Savings Plan is to help employees save for retirement by providing a tax-advantaged way to set aside money.

How can Genesco employees enroll in the 401(k) Savings Plan?

Genesco employees can enroll in the 401(k) Savings Plan by completing the enrollment process through the company's designated benefits portal.

Does Genesco offer a company match for contributions made to the 401(k) Savings Plan?

Yes, Genesco offers a company match for employee contributions to the 401(k) Savings Plan, which helps enhance retirement savings.

What types of investment options are available in Genesco's 401(k) Savings Plan?

Genesco's 401(k) Savings Plan typically includes a variety of investment options, such as mutual funds, target-date funds, and other investment vehicles.

Can Genesco employees change their contribution percentage to the 401(k) Savings Plan?

Yes, Genesco employees can change their contribution percentage to the 401(k) Savings Plan at any time, subject to certain guidelines.

What is the minimum age requirement for Genesco employees to participate in the 401(k) Savings Plan?

Genesco employees must be at least 21 years old to participate in the 401(k) Savings Plan.

Are there any fees associated with Genesco's 401(k) Savings Plan?

Yes, there may be administrative fees and investment fees associated with Genesco's 401(k) Savings Plan, which are disclosed in the plan documents.

How often can Genesco employees access their 401(k) account statements?

Genesco employees can access their 401(k) account statements quarterly through the benefits portal.

What happens to Genesco employees' 401(k) savings if they leave the company?

If Genesco employees leave the company, they can roll over their 401(k) savings into another qualified retirement account or withdraw the funds, subject to tax implications.

Does Genesco allow for loans against the 401(k) Savings Plan?

Yes, Genesco allows employees to take loans against their 401(k) Savings Plan balance, subject to specific terms and conditions.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Genesco offers its employees both a 401(k) plan and a pension plan to support their financial future. The company provides a matching contribution for the 401(k), with eligible employees receiving a match of $1 for every $1 contributed up to 3%, and an additional $0.50 for every $1 contributed on the next 2% of salary. This creates a significant incentive for employees to maximize their savings within the plan. The company offers several investment options for employees to allocate their funds. In terms of the pension plan, the Genesco Master Plan has been structured to provide long-term benefits for employees who meet specific age and service requirements. Eligibility typically involves full-time employees who have completed a certain number of years of service, though exact details of the formula and qualifying criteria may vary depending on the employee's role and hire date

Restructuring and Layoffs: In early 2024, Genesco announced a significant restructuring plan involving the closure of several retail locations and a reduction of their workforce by approximately 10%. This move is part of their strategy to streamline operations and improve financial performance amidst a challenging retail environment.

Genesco provides stock options and RSUs primarily to its executives and key employees. The stock options are granted with an exercise price equal to the market price on the grant date, while RSUs vest over four years. Genesco's RSUs and stock options are designed to reward long-term performance and retention.

Benefits Overview: Genesco’s official website provides an overview of their employee benefits, including healthcare coverage. Check the company’s careers or benefits section for detailed information on health plans, coverage options, and employee resources. Healthcare Terms: Look for specific terms like PPO (Preferred Provider Organization), HMO (Health Maintenance Organization), FSA (Flexible Spending Account), and HRA (Health Reimbursement Account). Glassdoor Employee Reviews: Employees often share insights about their healthcare benefits on Glassdoor. Look for reviews mentioning health insurance plans, deductibles, and employee satisfaction with the benefits package. Healthcare News: Check for any recent changes or updates in the benefits package as mentioned by current or former employees. Indeed Company Reviews: Indeed provides reviews from employees that might include information on health benefits. Look for specific mentions of health insurance options, provider networks, and employee feedback. Benefits Information: Sometimes, benefits information is summarized in company reviews or Q&A sections. LinkedIn