Thats correct. Only the half time portion of time and a half can be used as a deduction, as thats mandated.  Double time is not a mandated wage so you only get the half time portion of that as well, so the half time portion of double time is a quarter.

The deduction ties to the Fair Labor Standards Act.  Under that act, time and half is required to be paid for overtime, double time is not.

Thank you

What happens if the form w2 does not show any over time on box 14, but my client brings the last check stub with OT

use the info on the YE stub... w2's did not have to be updated for 2025.