2025 & Later IRS Qualified Overtime

Starting in tax year 2025 the IRS allows certain employees to deduct a portion of their overtime pay when filing their taxes. Please consult resources online to determine if you have employees who qualify for this deduction. 

In the system you can now specify which employees are eligible for this overtime deduction by checking the IRS Qualified Overtime box when adding and editing employees.

To see the amount of eligible overtime pay you can go to Payroll -> Reports -> IRS Qualified Overtime.

For employees who are marked as eligible and have qualified time in the year, the qualified amount will show in Box 14 of the W-2 with the code OT.