New Qualified Overtime Compensation

Currently, the automated feature doesn't calculate multiple overtime items or different pay rates. To fix this, manually enter the Qualified Overtime Tracking amount. There is no need to turn off the feature. You can still directly override Box 12 on each employee's W-2 as needed.

If you need to adjust an employee's year-to-date tracking balance, you’ll have these options:

• To increase the balance: Add the amount to the "Qualified Overtime Tracking" pay item on their next paycheck. This won't affect their net pay or taxes, as this is a tracking-only item.
   
• To decrease the amount: Edit the details of the employee’s previous paychecks as needed.
   

For more information, check out this resource: Impact of the No Tax on Overtime provision to QuickBooks Payroll.

Reply below if you have additional questions. We’re here to help.