For 2026 Forms W-2, due January 31, 2027

Code TT and TP for every employee, from one payroll file.

Bookkeepers, accountants and small employers preparing 2026 Forms W-2 for hourly or tipped employees. Upload a payroll export, see a free summary, then get each employee's Box 12 amounts, a list of things to check, and a CSV you can import or paste.

What you get

• Box 12 code TT (qualified overtime premium) for every employee, from the FLSA regular rate including bonuses and commissions
• Box 12 code TP (cash and card tips) with a Box 14b TTOC check
• Flags for state daily overtime, exempt employees, double time, service charges and missing data
• Import-ready CSV plus a workpaper (Word and PDF) for your W-2 file
• Works with exports from QuickBooks, Sage 50, Gusto, ADP, Paychex or any spreadsheet

The rule in one minute

• Code TT is the qualified overtime premium: one half of the employee's FLSA regular rate for every hour over 40 in a workweek. At $20 an hour, an overtime hour paid at $30 puts $10 in code TT.
• The regular rate includes nondiscretionary bonuses, commissions and shift differentials, not just the hourly rate.
• Overtime paid only because of a state daily rule (California, Alaska, Nevada, Colorado), a union contract, company policy, or a holiday or weekend premium does not count. Neither does pay to FLSA-exempt employees.
• Code TP is the cash tips (cash and card) the employee reported to you. Mandatory service charges are wages, not tips. Box 14b carries the Treasury Tipped Occupation Code.
• Report the full qualified amount. The employee's deduction limit ($12,500, or $25,000 joint) is applied on their own return.
• The 2025 penalty relief does not carry into 2026. A missing or wrong code TT is an incorrect W-2 and is fixed with a W-2c.

What the file should look like

Best: one row per employee per workweek. Column names are matched loosely, so "Hours worked", "Pay rate" or "Commission" work too.

Employee,Week ending,Hours,Rate,Bonus,Cash tips,Charged tips,TTOC
Ana Diaz,2026-01-04,46,20.00,0,85.00,140.00,102
Bo Lee,2026-01-04,52,24.50,40.00,,,

Also accepted: one row per employee with an Overtime pay total. Code TT is then one third of it, which is right only when all of it was weekly FLSA overtime at time-and-a-half; the results tell you when that assumption is risky.

Questions

Does my payroll system already do this?

Some products added an overtime premium pay item in 2026, some did not, and some report the full overtime wage instead of the premium. Use the results to fill the gap or to check what your system calculated. Guides by payroll system.

I do W-2s for many clients.

Each upload is one employer, $49. Bookkeepers usually bill it to the client as part of year-end.

What if a number looks wrong?

Reply to the delivery email with the details and we rerun it free. If the results are not usable, reply within 14 days for a full refund.

Is this tax advice?

No. A calculation aid based on the IRS rules for tax year 2026, not tax or legal advice. The employer is responsible for the amounts on its Forms W-2.

Upload a payroll file Free one-employee calculator

A calculation aid based on the IRS rules for tax year 2026, not tax or legal advice. The employer is responsible for the amounts on its Forms W-2.