Set up pay items for the OBBBA overtime premium

Do the following to set up a payroll item to report the OBBBA overtime premium amount from payroll checks on W-2s for tax year 2026 and later:
  1. Select
    Setup
    Payroll Items
    .
  2. Go to
    Box 12 - Code
    .
  3. Select
    TT - Total qualified overtime compensation; use for deduction on Sch. 1-A (Form 1040)
    .
    important
    If you select this code, you'll need to also select the following:
    • Hourly rate
      as the
      Calculation type
      .
    • 1.5000 or greater
      as the
      OT multiplier
      .

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