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Healthcare Provider Update: Healthcare Provider for Occidental Petroleum Occidental Petroleum collaborates with Lyra Health to provide enhanced mental health benefits. This partnership offers employees access to cost-free mental and emotional healthcare, focusing on making effective services convenient and accessible. Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs for employees at Occidental Petroleum are expected to rise significantly due to various market pressures. A recent forecast indicates an overall increase of approximately 8.5% in healthcare spending, driven by rising hospital and health system operating costs, along with increased demand for behavioral health services. Additionally, if enhanced federal premium subsidies for ACA marketplace plans are allowed to expire, many employees could face drastic hikes in their out-of-pocket costs. This scenario underscores the need for proactive planning and strategic adjustments in employee healthcare benefits amid a shifting economic landscape. Click here to learn more
'“Occidental Petroleum 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.
'“Occidental Petroleum 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:
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How the new “No Tax on Tips” law works for eligible employees.
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Income limits, qualifying occupations, and deduction rules.
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How Occidental Petroleum 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 Occidental Petroleum 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:
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- Food and beverage service
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- Events and entertainment
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- Guest services and hospitality
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- Home repair and maintenance services
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- Personal services
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- Personal well-being and appearance
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- Recreation and education
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- 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 Occidental Petroleum 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:
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- The deduction phases out for single filers at $150,000 MAGI.
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- It begins phasing out for joint filers at $300,000 MAGI.
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- It applies whether the taxpayer uses the standard deduction or itemizes.
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- 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 Occidental Petroleum 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 Occidental Petroleum 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 Occidental Petroleum households—may still owe:
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- State income taxes
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- Local income taxes
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- Social Security and Medicare taxes
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- 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 Occidental Petroleum households with individuals in service-based roles.
How to Make a Deduction Claim
Eligible employees can claim the deduction by referring to IRS instructions:
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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. Occidental Petroleum 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 Occidental Petroleum—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 Occidental Petroleum households evaluating income timing.
Do You Need Assistance Navigating These New Tax Laws?
The Retirement Group can help Occidental Petroleum 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 are the key provisions of the Occidental Petroleum Corporation Retirement Plan that employees should understand to maximize their benefits, and how does the company structure its contributions relative to employees' earnings? As employees of Occidental Petroleum Corporation consider their retirement planning, it's vital to grasp how the company's contributions function, particularly concerning the wage base and annual earnings limits.
Key Provisions of the Occidental Petroleum Corporation Retirement Plan: The Occidental Petroleum Corporation Retirement Plan is fully funded by the company, with contributions based on an employee's annual earnings. The company contributes 7% of annual earnings up to the Social Security wage base ($137,700 in 2020) and 12% on earnings above the wage base. This structure is designed to help employees build substantial retirement savings. The plan's benefit limits align with IRS regulations, and employees should be aware of how these contributions are applied based on annual earnings limits to maximize their benefits(Occidental_Petroleum_Co…).
How can Occidental Petroleum Corporation employees manage their investment options within the Retirement Plan, and what resources does the company provide to help them make informed decisions? The investment options available through the Occidental Petroleum Corporation Retirement Plan serve as a significant tool for employees wishing to tailor their retirement savings according to their financial goals and risk tolerance. Understanding these options can be complex and requires an in-depth exploration of available funds, associated risks, and projected performance.
Managing Investment Options: Occidental Petroleum employees have control over how contributions to their Retirement Plan are invested. The plan offers various investment funds, including bond and stock market index funds, and target date funds. Employees can manage their investment elections through the online platform, oxy.voya.com, which also provides fund performance data and advice resources, such as Online Advice and Professional Management services, to assist employees in making informed decisions(Occidental_Petroleum_Co…).
In what ways do vesting schedules impact employees' retirement benefits at Occidental Petroleum Corporation, and what rights do employees have under the Employee Retirement Income Security Act (ERISA) regarding these benefits? Navigating the vesting schedule can make a profound difference in the go-forward retirement landscape for employees. Occidental Petroleum Corporation offers a structured approach to vesting, impacting when benefits are owned outright, and understanding the implications of ERISA for retirement planning is essential for all employees.
Impact of Vesting Schedules: Occidental Petroleum's Retirement Plan vests fully after three years of service. Employees are always fully vested in any Rollover accounts. Vesting schedules impact when employees can fully claim their retirement benefits, with protections under ERISA that guarantee the right to earned benefits. Employees who leave before vesting forfeit the nonvested portion of the company’s contributions(Occidental_Petroleum_Co…)(Occidental_Petroleum_Co…).
What are the distribution options available for employees of Occidental Petroleum Corporation when they reach retirement age, and how do these options affect their financial planning? The variety of distribution options at Occidental Petroleum Corporation can create a much more personalized retirement plan, allowing employees to consider how best to receive their benefits while factoring in tax implications and future income needs.
Distribution Options at Retirement: Employees reaching retirement age (60) have multiple distribution options from the Retirement Plan, including lump sum payments and annuity options. These choices impact financial planning, as each option has different tax and income implications, allowing employees to tailor their benefits to their future financial needs(Occidental_Petroleum_Co…)(Occidental_Petroleum_Co…).
How does Occidental Petroleum Corporation support employees who experience disability, and what provisions are in place for continuing retirement contributions during such periods? Understanding the support structure provided by the company, specifically in relation to short-term and long-term disability, is crucial for employees who may find themselves in unexpected circumstances. It’s important for them to know whether retirement contributions will continue during their disability or if they might need to make adjustments to their financial planning.
Disability and Retirement Contributions: Occidental Petroleum continues to contribute to the Retirement Plan if an employee is receiving short-term disability benefits. The contributions are based on the employee's actual pay during the disability period. This provision ensures that retirement savings can continue during times of temporary disability, supporting long-term financial planning(Occidental_Petroleum_Co…).
How can employees at Occidental Petroleum Corporation ensure their beneficiary designations remain current and what are the implications of these designations for estate planning? The process of maintaining accurate beneficiary designations is critical for the smooth transition of retirement benefits, and employees must be aware of how changes in personal circumstances can impact these designations.
Beneficiary Designations: Employees should regularly update their beneficiary designations to ensure their retirement benefits are directed as desired upon their death. Changes in personal circumstances such as marriage, divorce, or the death of a previously designated beneficiary should prompt an update. Failure to do so may result in unintended allocations(Occidental_Petroleum_Co…)(Occidental_Petroleum_Co…).
What are the specific eligibility requirements for the Occidental Petroleum Corporation Retirement Plan, and how do these requirements differ for various employee categories, such as full-time versus part-time employees? Recognizing the nuances of eligibility criteria within the retirement plan is essential for employees to understand when they can begin to participate and what contributions may apply, especially if they transition between roles.
Eligibility Requirements: Full-time and part-time non-union employees and some union-represented employees are eligible to participate in the plan. Contributions begin automatically on the first day of the month of employment or eligibility. Understanding the specific eligibility requirements, especially for employees transitioning between full-time and part-time roles, ensures accurate participation and benefit accumulation(Occidental_Petroleum_Co…).
How can employees reach out to Occidental Petroleum Corporation for assistance regarding their Retirement Plan benefits, and what are the best practices for ensuring their inquiries are addressed promptly? Effective communication with the company is key during the retirement planning process. Employees should know how to navigate company channels to maximize their understanding of benefits available to them.
Contacting Occidental Petroleum for Assistance: Employees can manage their retirement plan and address inquiries through the Oxy Retirement Service Center and the oxy.voya.com platform. Best practices for ensuring prompt responses include using the appropriate online tools and staying informed about plan updates and changes(Occidental_Petroleum_Co…).
What are the tax implications of distributions from the Occidental Petroleum Corporation Retirement Plan, and how can employees plan accordingly to minimize their tax burden during retirement? Having a comprehensive understanding of how taxes will impact withdrawals is crucial for employees as they strategize their retirement income, and these tax considerations can play a significant role in long-term financial planning.
Tax Implications of Distributions: Distributions from the Occidental Petroleum Retirement Plan are subject to standard federal and state taxes, including required minimum distributions (RMDs) starting at age 72. Employees should consider consulting a tax advisor to minimize tax burdens and maximize retirement income by understanding the specific tax consequences of various distribution options(Occidental_Petroleum_Co…).
How does Occidental Petroleum Corporation's retirement plan structure address the needs of employees transitioning from active service to retirement, particularly in terms of investment performance and management of existing accounts? As employees consider retirement, they should be well-informed about how the company manages contributions already made, ensuring that their investment strategy aligns with their anticipated retirement lifestyle and goals.
Transition from Active Service to Retirement: Occidental Petroleum supports employees transitioning to retirement by continuing contributions and offering a range of investment options that align with long-term financial goals. This structure allows employees to manage their investments effectively during retirement, ensuring that the plan remains aligned with their financial objectives(Occidental_Petroleum_Co…).
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