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Starting in 2026, the employers need to keep track of Qualified Overtime and Qualified Tips amount for each employees. How are you setting up in EasyAcct? For the tips, it is easy. For the overtime, how do we suppose to to since only the the extra "half" of "time-and-a-half" compensation is qualified for no tax purposes?
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Until the W2s are updated, We just added code 14 to our Overtime GP Code. That allowed us to have the overtime amount printed on the 2025W2s.
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Are you then manually doing the necessary calculation and then manually entering the information in box 14?
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no, our OT is auto set to roll to GP2 for Overtime. We just put code 14 in the box next to GP2 and that automatically puts the Gross Wages into box 14
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The default settings to auto-roll OT to GP2 puts the entire gross amount in though (the full time and a half). So unless you have changed the settings somehow what is going to print in box 14 is the full gross 1.5 pay, not the qualified .5 rate. So you (or whomever does the tax return more likely) is still going to have to manually figure out the actual deductible amount.
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This is the question I came here to ask. I'm not understanding how we are supposed to do this.
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I'm doing the first payroll of 2026 (EasyAcct Pro) and there is no way to set up the OT premium only. I considered changing the OT rate in GP2 to 1.0 and adding additional GP code as the .5 at the correct hourly rate and pointing it to box 14...not sure if this will work though. It would be nice for Intuit to let us know if or when an update will be available for this new W-2 reporting requirement before I change everything. INTUIT PLEASE HELP....
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When I read about 2026 W2, they said that there should be a code to put on the box overtime. It is code TT, but I am not sure whether we need to separate the regular portion and the premium portion by ourselves; or the code TT will calculate the premium portion of the overtime for us.
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Unfortunately EasyAcct Pro has no code TT for the 2026 W-2....it would be so nice if Intuit would give us guidance on this....A WEEK AGO when 2026 started.
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I don't think EasyAcct updated their software for that yet. It is mandatory for 2026, so I think they should have it in upcoming updates.
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According to IRS " If an employee stops working for you before the end of the year, you may give your former employee Form W-2 any time prior to, but no later than January 31, 2025. If your employee asks for the Form W-2, you must give your employee Copies B, C, and 2 within 30 days of the request or within 30 days of the final wage payment, whichever is later."
I don't think anyone at Intuit realizes they don't have all year to work on this.
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We are putting all the hours under the employee's regular pay and only the qualified half time in the overtime field. Basically no more having the program automatically flip all hours over 40 into the overtime field and calculating it at 1.5. We are manually entering the amount for the .5. A little more time consuming but should make the W-2 easier next year. There is suppose to be a new box on the 2026 W2 for overtime. It is taking a little bit of time to train our clients and their employees that the pay stub is going to look different this year.