Reporting Qualified Overtime on Form W-2 Starting in 2025, the One Big Beautiful Bill Act introduced a new federal income tax deduction for qualified overtime pay. Please discuss the deduction and taxable income with your tax advisor. Because the deduction applies retroactively to January 1, 2025, the IRS allows flexibility during this transition year for employers to report overtime information. The City’s Tyler payroll system has not been configured to automatically calculate and...
Reporting Qualified Overtime on Form W-2
Posted on Feb 2, 2026

