2026 Form W-2

Code TT and TP, by payroll system

What changed on the 2026 W-2, how to check what your payroll product calculated, and how to get the amounts when it did not.

The rule

• 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.

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.