For 2026 Forms W-2, due February 1, 2027
Qualified overtime for every employee, worked out the IRS way.
Starting with tax year 2026, employers must report qualified overtime in Form W-2 box 12, code TT. If your payroll software leaves the figure to you, put your payroll or timesheet data in a CSV and get each employee's box 12 TT amount, with the week-by-week working shown.
- Uses the IRS method: hours over 40 in each workweek × ½ × the FLSA regular rate
- Leaves out double-time extras and daily or state-only overtime, which don't qualify
- Includes shift differentials and multiple pay rates in the regular rate
- Holds, rather than guesses, when your data falls outside what it supports
- Runs entirely in your browser. Your payroll file is never uploaded.
Calculator
1 Choose your file
You need records by workweek. A biweekly or semimonthly payroll summary alone isn't enough: use weekly paychecks by pay item, or a timesheet with hours by day or week. Any CSV works if it has the columns the layout needs; you match them to your headers in step 2. Excel file? Use File → Save As → CSV. Or start from a template: payroll, one row per item · payroll, one row per paycheck · timesheet · official IRS and DOL examples (expected results $100, $36 and $39).
2 Match the columns
Preview the first rows
3 Check the settings
Choose the days from workweek end to payday. Overtime is reported in the year it is paid, so the last weeks of December may belong to next year's W-2.
Payroll items
We guessed what each item is. Bonuses, commissions and anything we don't recognise start as Needs your choice, and results for those employees are held until you choose. A bonus counts as pay earned in the same week only if it was earned in that paycheck's week. If it covered a longer period, choose Not supported. Discretionary gifts are Ignore.
| Item in your file | Rows | Treat as |
|---|
Employees
Tick anyone who is exempt from FLSA overtime (for example salaried managers, or owners with 20% or more who manage). They get no code TT.
| Employee | FLSA exempt | Base rate if missing |
|---|
4 Box 12 code TT results
| Employee | Weeks / checks | Hours worked | FLSA OT hours | Box 12, code TT | Notes |
|---|
Unlock every employee and the exports
The free preview shows the company total and the first two employees. The pass shows everyone, and adds CSV exports and a printable audit worksheet. $49 for one employer's 2026 W-2s, with unlimited re-runs on this browser through April 15, 2027.
Before you buy: this needs records by workweek. A biweekly or semimonthly payroll summary on its own is not enough. Code TT is worked out one workweek at a time, and a two-week total can't be split into weeks. You need one of these:
- weekly paychecks broken out by pay item (regular hours, overtime, double time, differentials, with hours and amounts), or
- a timesheet with hours by day or week and each employee's base hourly rate.
Check the preview above first. If employees show Held, or nothing can be calculated, fix the data before paying.
Card payment by Stripe in a new tab, where you enter the employer's name. This page stays open with your data, and unlocks when payment completes.
Check these figures before filing. Open the week-by-week detail to see the hours, regular rate and TT amount behind each line.
How it's calculated
IRS fact sheet FS-2026-13 (August 2026), Q12, gives the qualified overtime for an FLSA overtime-eligible employee each workweek as:
hours worked over 40 in the workweek × ½ × the employee's FLSA regular rate
The regular rate is the week's straight-time pay plus other pay earned that week (such as shift differentials), divided by hours worked. Each workweek stands alone. If you pay double time, or overtime after 8 hours a day under state law, only the FLSA-required half counts (Q16). Code TT is overtime actually paid (Q10), so if a payroll register shows less overtime premium than the FLSA requires, that employee is held rather than reported. Hours for PTO, holidays and sick time are not hours worked. The official examples file reproduces FS-2026-13 Q16 ($100) and 29 CFR 778.110(a) and (b) ($36 and $39).
Supported
- Hourly, FLSA overtime-eligible employees under the standard 40-hour workweek.
- One or more hourly rates, shift differentials, and bonuses earned within the same week.
- Payroll registers for weekly pay, where each paycheck is one workweek. Paychecks are counted in the year they are dated.
- Timesheets for any pay schedule. You set your workweek start and payday, and each week counts in the year it is paid. Timesheets don't show what was paid, so these results assume overtime was paid as the FLSA requires.
Held, never estimated
The employee shows Held with the reason, and is left out of the total, when:
- Pay rates are missing.
- Pay is salary or piece rate, or a bonus covers several weeks.
- A pay item hasn't been classified yet.
- Less overtime premium was paid than the FLSA requires.
- Registers are biweekly or semimonthly, or the weekly paychecks don't line up with workweeks.
- The file has off-cycle pay or reversed hours.
Not for
- Employers using the hospital 8-and-80 system, public-safety work periods (section 7(k)) or comp time. The tool can't detect these, so don't use it for those employees.
- Deciding who is exempt from the FLSA. You tick exempt employees yourself.
- Qualified tips (code TP), state reporting, or filing. You enter the amounts in your payroll software or on the W-2.
This is a calculation tool, not tax or legal advice. It isn't affiliated with or endorsed by the IRS, the Department of Labor, or any payroll software company. You are responsible for the amounts you report. If you find an error after filing, the IRS requires a Form W-2c.
Price
$49 one employer, tax year 2026
- Every employee, with week-by-week detail
- CSV exports and a printable audit worksheet with the employer's name
- Unlimited re-runs for that employer through April 15, 2027
- Free preview first, on your own data: company total plus two employees
- Refund: email within 30 days for a full refund if the calculator can't produce results from your data, or gives a figure that differs from the IRS method shown above
Questions
Is my payroll data uploaded?
No. JavaScript reads and calculates the file inside your browser tab. The only things sent to a server are the Stripe payment, on Stripe's own checkout page, and anonymous page counts (see Privacy).
Does it read my payroll software's export directly?
It reads any CSV and lets you match columns to your headers. We haven't verified exports from specific payroll products. Try the free preview on your file first; if it doesn't map, copy your figures into one of the templates above.
Why not just divide overtime pay by 3?
That shortcut only works when every overtime hour is FLSA weekly overtime at exactly 1.5× a single rate. It overstates code TT for double time and daily overtime, and can get it wrong when shift differentials or bonuses change the regular rate.
Which employees are FLSA overtime-eligible?
That's your call. The IRS fact sheet lists common exemptions (Q4–Q5), and the Department of Labor's fact sheets cover the details. If you aren't sure, ask your payroll provider or adviser.
How do I get help?
Email support@vandtage.com.