Good afternoon, @dLearned.
Thanks for taking the time to reach out to the QuickBooks Community. I hope you're doing well today.
Since Qualified Overtime Tracking is a non-taxable tracking item that does not affect net pay, you can manually adjust the YTD balance by adding the missing amounts into a single payroll run.
If the amount needs to increase: Simply add an additional amount to the “Qualified Overtime Tracking” pay item on the next paycheck. Again, this item is for tracking only, so there's no impact to net pay or taxes for increasing the amount tracked on future paychecks.
Here's how you can adjust the YTD Balance:
First, you'll need to calculate the missing amount:
- Find the total overtime hours from pays 1 and 2.
- Determine the "qualified" portion (typically 1/3 of the 1.5x overtime rate).
- Example: If the employee earned $150 in total overtime pay for those two weeks, the qualified tracking amount to add is $50.
Next, you'll need to adjust via the next paycheck:
- Start your next payroll run in the QuickBooks Online Payroll center.
- Click the Edit icon next to the employee's name.
- Find the Qualified Overtime Tracking field.
- Add the current week's amount PLUS the catch-up amount from Pays 1 and 2 into this field.
- The YTD balance on the resulting pay stub will now correctly include all 2026 qualified overtime.
That should do the trick. For more information about this process, check out Impact of the No Tax on Overtime provision in QuickBooks Payroll.
Please let me know if you have any additional questions or concerns. I'm happy to lend a hand any time. Take care!
