Don’t File W‑2s Until You Understand Tax‑Free Overtime скачать в хорошем качестве

Don’t File W‑2s Until You Understand Tax‑Free Overtime

Tax-free overtime and qualified overtime reporting for 2025 and 2026 can be confusing for employers. In this episode of Overnight Edge, Brett Hersh explains W‑2 reporting rules, Box 12 Code TT, Box 14 options, and FLSA overtime requirements. Tax-free overtime was created by the Big Beautiful Bill on July 4, 2025, allowing employees to deduct qualified overtime premiums (up to $12,500 single / $25,000 MFJ). 📌 Key Topics Covered: Tax-free overtime created by the Big Beautiful Bill (July 4, 2025) 2025 W‑2 reporting (Box 14 – optional but recommended) 2026 W‑2 reporting (Box 12 – Code TT, mandatory) How to calculate qualified overtime (only the FLSA premium) What does NOT qualify (holiday pay, double time, union rates) Payroll setup tips to avoid IRS issues Why employees must NOT deduct the full overtime amount 📌 Employer reminder: Report all qualified overtime, not the employee deduction limit. Payroll and tax software handle the cap. 👇 Have questions? Leave a comment—we read them all. 📺 Watch more tax & payroll videos on the channel📘 Learn more at OvernightAccountant.com 🔔 Subscribe for weekly tax, payroll, and business insights 0:00 Intro 0:17 Overview of Tax Free Overtime 0:32 2025 Reporting 1:32 2025 Example 1:56 2026 Reporting Instructions 2:20 2026 Reporting Instructions 2:29 Notes 3:22 Not all Overtime Qualifies 💡 Important Reminder: Only overtime required under the Fair Labor Standards Act (FLSA) qualifies—and only the premium portion (generally 1/3 of total OT pay) is deductible. 📂 Best Practice for Employers: Set up qualified overtime as a separate payroll item and keep it out of bonuses, holiday pay, and other wage types. 👇 Got questions? Drop them in the comments—we read them all. 📺 Watch the full playlist for more tax & payroll strategies 📘 Learn deeper tax & business strategies:👉 OvernightAccountant.com 🔔 Subscribe for weekly tax, payroll, and business insights. About Overnight Accountant Overnight Accountant helps small business owners, real estate professionals, and entrepreneurs make smarter decisions about taxes, finance, and business growth. Our goal is simple: cut through the noise, break down complex tax rules, and give you practical strategies you can use today to keep more of what you earn. Whether we’re tackling IRS updates, debunking viral tax myths, or walking through real-world business issues, every video is designed to give you clear, actionable insight without the jargon. If you want to build a stronger business, reduce tax stress, and stay ahead of the game, hit Subscribe and join the OA community. New videos drop regularly—and each one aims to give you an edge that lasts long after the IRS closes for the day.