W-2 Box 12 code TT calculator
Work out one employee's 2026 qualified overtime compensation: the FLSA half-time premium for hours over 40 in each workweek.
Bonuses are spread evenly over the weeks you list. For a bonus earned in particular weeks, use the payroll-file helper, which handles it week by week.
Only right if all of it was for hours over 40 in a workweek at 1.5x the regular rate. Take out daily, holiday, weekend or policy overtime first.
Code TT: $0.00
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How code TT works
- 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.
Guides by payroll system
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.