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Bimonthly Newsletter | November 2025

PMHCC Offices will be closed on the following dates:

Thursday, November 27 and Friday, November 28

Wednesday, December 24 and Thursday, December 25

Thursday, January 1, 2026

Toys for Tots Reminder: Donate Now through Dec 5

*Last collection day has been updated to Friday 12/5

Every year, PMHCC volunteers as a toy drop site for the Marine Corps Toys for Tots Program. We would love your help in making this year's collection the best one yet! Please consider donating new, unwrapped toys now through December 5th at PMHCC Raleigh (9207 Baileywick Road, Raleigh, NC 27615).

OBBB Qualified Overtime Compensation

Reporting Procedures for 2025

For the 2025 tax year, the IRS is providing penalty relief to employees who do not separately report qualified overtime compensation on Form W-2 since the form will not be updated in time for the new deduction pursuant to the One Big Beautiful Bill Act. Employers continue their current reporting procedures for 2025 but are encouraged to report qualified overtime compensation to employees using alternative methods.

The IRS encourages employers to provide employees with a separate statement of their qualified overtime compensation so employees can claim the deduction on their personal income tax returns. This information can be in a written statement in Form W-2 Box 14 labeled "Qualified OT" or "OBBB Overtime".

If PMHCC prepares your payroll, we will include the information in Form W-2 Box 14 labeled "Qualified OT".

The calculation for the qualified overtime compensation is the premium portion of overtime pay, which is calculated as one-half of the employee's regular hourly rate for each overtime hour worked. Example given: $22.50 (overtime rate) - $15.00 (regular rate) = $7.50 (premium portion) and 5 overtime hours worked. Multiply the premium amount by the number of overtime hours worked. $7.50 x 5 = $37.50 is qualified overtime compensation.

Please reach out to your consultant with any questions.

Secure 2.0 Act: Roth Catch-Up Contributions

Roth catch-up contributions for individuals with FICA wages of $150,000 (as indexed) or more the prior calendar year are required to make the catch-up contributions as Roth catch-up contributions, not as traditional pretax contributions. This goes into effect on January 1, 2026.

Amounts contributed as Roth contributions are includible in gross income in the year of the contribution, but distributions from the account, including earnings, generally are tax-free. This requirement was originally due to take effect in 2024 but was delayed until 2026 due to concerns that plans and service providers could not change their administrative and recordkeeping procedures in time to comply.

Under SECURE 2.0, participants attaining ages 60-63 during the taxable year may make additional tax-preferred contributions to their retirement savings, known as “super catch-up contributions.” Higher earners must follow the Rothification requirement for both catch-up and super catch-up contributions.

Plans without a Roth option: Plans are not required to include a Roth option. For plans with a catch-up provision but no Roth option, catch-up contributions cannot be made.

Helpful Resources

One Big Beautiful Bill Cient Guide

2026 Tax Deadline Calendar

2026 Quick Facts Data Sheet

2026 Retirement Limits

⭐Staff Spotlight⭐

Kinston Office Staff

Karen Aldridge

Receptionist

Karen grew up in eastern North Carolina and resides with her husband on a farm in La Grange. She has worked as a receptionist for Carolina Professional Consultants for 28 years before joining PMHCC in 2025, performing many duties as needed by consultants. Outside of work she enjoys family time and boating at the coast along with being a dog parent to three Australian Shepherds.

Kaye Morris

Accountant

Kaye began her accounting career with Carolina Professional Consultants in Kinston, NC, working part-time while a senior in high school. After earning an Associate Degree in Accounting from Lenoir Community College, she returned to work full time with CPC in October 1975. With the merger, she joined PMHCC in July 2025. When not at work, Kaye enjoys spending time with family and friends at the beach.

Loretta Beard

Accountant

Loretta has 34 years of experience providing monthly accounting services for her clients. With the merger, she joined PMHCC in July 2025. She resides in La Grange, NC and is married with one son and one daughter. In her free time, she loves to read, cook and spend time with family and friends.

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Visit Our Website

Professional Management Healthcare Consultants, Inc

Raleigh Office

9207 Baileywick Road

Raleigh, NC 27615

Phone (919) 876-9711

Kinston Office

2506 N. Herritage St., Suite C

Kinston, NC 28501

Phone (252) 522-1220

Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisors. Before making any decision or taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

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