Payroll & tax Verified

Qualified overtime must be reported on 2026 Forms W-2 (box 12, code TT)

Jurisdiction
Federal (US)
Effective date
2026-01-01
Who it covers
Employers paying FLSA-required overtime
Status
Verified against an official source

The law, summarized

  • Employers must report qualified overtime compensation paid in 2026 on Form W-2, box 12, code TT.
  • Qualified overtime is the FLSA-required amount above the regular rate (the "half" of time-and-a-half).
  • Employers may not reduce withholding for the overtime deduction unless the employee submits a valid updated W-4.
  • IRS provided transition relief for 2025 reporting.
StateHR Take · AI-generated analysis, not legal advice

Who should act: Employers paying FLSA-required overtime with workers in Federal. Confirm your payroll system and W-4/W-2 processes handle this change now (in effect since 2026-01-01). Confirm the details in the official source before acting.

Generated 2026-10-15T18:41-05:00

Official sources