Overtime Law Update

[Only4Me]

Has anyone heard if EasyAcct will have an update for the new overtime law?  If it's not done for 2025, you don't get penalties, but employees are not going to be happy and for me to go through each company and write a letter to each employee about their overtime so they can get the credit on their tax return, is going to be an absolute nightmare!

[IRonMaN]

Beauty is in the eye of the beholder when it comes to the Big Beautiful Bill.  Tax preparers might not find it all that beautiful when it comes to implementing some of that beauty.  But with that said, I doubt if you will get much of a helping hand from EasyAcct at this point in time.

[Only4Me]

I wasn't saying it's good or bad.  I am talking about Easyacct support and if anyone has heard anything about an update.  Do you use EasyAcct?

[IRonMaN]

We used it years ago but just use their Information Return System these days.  But I have hung around here for a lot of years so I know Intuit sucks at keeping their customers informed and I would be very surprised if they modified their software for 2025 in any way that would give you what you are looking for.

[abctax55]

I don't use EasyACCT....   I use  QB.  But the overtime is shown on the paycheck stub.  As of now, QB hasn't addressed if/how anything will be provided via the software to help with the 'reporting' for 2025.

And, I'm not holding my breath for QB/Intuit to modify or assist at all.  YMMV 

[Only4Me]

Yes, the overtime is reported on the paystub, but with the new law you have to figure the difference and put it on the W-2.  For instance, someone who is paid overtime at time and half and their hourly rate is $30.  When they get overtime they make $45 an hour for the overtime hours, but only the $15 is considered "qualified overtime" and should be reported on their W-2 in box 14 so they can get the credit.  

[abctax55]

but with the new law you have to figure  =  2026 rules

For 2025 - 'any' reporting method is allowed.   

And yes, I'm *aware* that only the amount above regular pay is what is allowed for the computation. I have QB set up to show only that as OT pay.  Guess you or EasyACCT is set up differently.

Have fun - creating this PITA issue in the friggin' middle of the year wasn't very well thought out.

[Only4Me]

Overtime pay is regular pay and time and half, so all of that amount should be reported on their paystub as overtime.  You having it set up to only show the amount over their regular pay isn't correct on the paystub, but whatever works for you.

And yes, I'm aware about the 2025 rules as I said in my original post.  You can issue a statement to each employee instead of reporting on their W-2 without incurring penalties, but it will still be a huge hassle if EasyAcct doesn't come up with something.  Which I'm sure they will.  I was only asking if anyone heard anything from EasyAcct support yet.

[abctax55]

And you do you.

I'm done here.

[Ope]

I thought I read on the IRS website that 2025 W-2s will not be updated to show overtime.

[Ope]

I was going to tell my employees that 1/3 of their overtime pay is deductible.

[Only4Me]

Yeah, that's correct, but I was hoping EasyAcct would come up with something to make it easier to calculate so I could give all the employees a letter with their qualified overtime on it since I have over 500 companies. 

[IRonMaN]

You can always hope.