Income reported on a 1099 represents an independent contractor relationship.  How does a contractor earn overtime pay based on fair labor standards act?

I understand, but it seems for 2025, a transition year, it seems they are going to allow it. I read that multiple times, and they have the field for it.Look at 14 b in the Sch. 1A

I haven't downloaded the software yet, so I'll have to take your word for what is there 😁

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@athaureaux6 wrote:

I understand, but it seems for 2025, a transition year, it seems they are going to allow it. I read that multiple times, and they have the field for it.Look at 14 b in the Sch. 1A

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Have you read the Instructions?  It clearly says it is only for those who are covered by the FLSA.

As for line 14b, I admit, I can't think of why that is there, except for the circumstance where a payment to a deceased employee could be on a 1099-MISC.  At any rate, it does say to "see instructions" and the instructions clearly state it is only FLSA overtime.

Does anyone know if this will be a manual figure form?

Overtime from W-2s is just a matter of entering the total overtime as either time and a half or double time in the applicable boxes and the software will do the rest.  As Bill noted, it shouldn't apply to 1099s except in a very rare instance.

Thanks, I really, really appreciate the information.

You betcha!

Thank you Bill

I just found that Line strange. Now I notice that in the payroll software to fill out 1099 NECs to contractors, for the first time, the software is asking for tips and overtime amounts, (for the first time). Isn't that weird? Just saying. I agree with what you said. 

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@athaureaux6 wrote:

Thank you Bill

I just found that Line strange. Now I notice that in the payroll software to fill out 1099 NECs to contractors, for the first time, the software is asking for tips and overtime amounts, (for the first time). Isn't that weird? Just saying. I agree with what you said. 

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Yes, for 2026 tips need to be separately reported on the 1099s.

If I had to GUESS, there may be some weird, obscure situations that a person with a 1099 could be covered by FLSA.  Other than the one I mentioned about a deceased employee, I can't think of any, but maybe something else is out there.

Dont forget. Lots of lazy employers out there who simply do not want to put "workers" on payroll or pay benefits, especially if limited time periods, and they think its an option to treat " employees" as 1099's ( as they would say). Meanwhile they may be managing them as "employees" paying them "overtime" especially if in excess of 8 hr day.I see it most with young students ( esp college kids) typical.