Employers are required under the One Big Beautiful Bill Act to furnish statements to employees showing qualified overtime pay received throughout the year. Starting with check dates in 2026, you will need to separately report any time-and-a-half paid that should be excluded from the qualified amounts reported in Box 12 on the W-2.
Qualified overtime is defined by the IRS in this guidance document, pages 8 through 11. The premium portion of overtime payments must be reported on W-2s in Box 12.
The earnings code OT – Overtime in Paycor should not be used for any other purpose other than to pay for hours worked over 40 in a workweek for non-exempt employees. If you need to pay time-and-a-half for any other purpose, please contact Stephanie Jerstad, to discuss new earnings codes to accommodate those needs.
