Employer workflow

Qualified overtime tracking setup for employers

Create a cleaner process for identifying covered, nonexempt overtime records, documenting methods, and answering year-end questions.

Not affiliated with the IRS, Treasury, Department of Labor, payroll providers, or tax software vendors. For educational and tracking purposes only.

Employer use cases

Map how regular rate, overtime hours, overtime rate, and annual statements are presented across payroll exports.

Prepare a consistent response path for employees asking about W-2 Box 14, portal statements, or qualified overtime amounts.

Create a clean summary that helps outside tax professionals understand what the employer can and cannot confirm.

Do not treat every premium, bonus, or state-law overtime rule as qualified overtime without FLSA review.
Escalate exemption, classification, regular-rate, and collective-bargaining questions to the appropriate professional.
Keep payroll records in employer-approved systems. This first release does not store employee payroll records.
Maintain clear language that the employer is not giving employees personal tax advice.

Use the inquiry form to describe payroll provider, hourly employee count, tax year, and the tracking problem you need to solve.

Official sources

Source baseline checked 2026-06-25

Defines qualified overtime compensation, FLSA overtime eligibility, deduction limits, reporting rules, and taxpayer requirements.

Internal Revenue Service | FAQ

Summarizes the deduction cap, MAGI phase-out thresholds, Social Security number rule, and 2025 reporting note.

Internal Revenue Service | Overview

Provides 2025 methods for individuals estimating qualified overtime compensation when separate reporting is not available.

Internal Revenue Service | Notice

Explains the FLSA overtime baseline for covered, nonexempt employees working over 40 hours in a workweek.

U.S. Department of Labor | Guidance