Also using right networks hosted desktop contractor 24. addition and I also have issues with the qualified overtime.  It is showing up on two employees and no others.  Also, I am confused as to why it shows up in my pay liabilities screen.  I am so frustrated with this item and have no idea how to address this.  Any suggestions greatly appreciated before we get too deep into 2026.

I understand the importance of accurate payroll calculations, @pamtilley. To ensure Qualified Overtime Tracking calculates properly, let's ensure your payroll tax table is updated.

These updates often include fixes and adjustments for payroll calculation features, including overtime tracking. You can do this by navigating to the Employees menu and selecting the Get Payroll Updates option.

You’ll also want to make sure QuickBooks Desktop is updated to the latest release to ensure accurate payroll calculation.

Regarding the display of Qualified Overtime in the Payroll Liabilities screen,@tinaphcr, you can review the account mapping of your items, especially if it’s generating liabilities that don't match your expectations.

If the issue persists, I recommend contacting our Live Support team. They can review your setup and help resolve functionality issues with Qualified Overtime Tracking.

1. Go to the Help menu and choose QuickBooks Desktop Help/Contact Us.
2. Select Contact Us.
3. Type a brief description of your issue and concern in the box provided, then click Continue.
4. Sign in to your Intuit account, select Continue, and then Continue with my account.
5. You'll receive a single-use code in your email; enter the code and select Continue.
6. Click Have us call you.          

Please don't hesitate to contact us if you have further questions. We're always here to lend a hand whenever you need it.

Hello all, thank you for all your advice and comments in this article. It helped my thought process.  In my Quickbooks Desktop Enterprise Solutions 24.0, I think I fixed our problem.  I manually went into each OT Payroll Item (we have about 10) and I clicked the rate from 1.5 to 2.0 and then back to 1.5, and then saved the changes, even though I didn't change anything.  Something about that process fixed our Qualified OT being tracked accurately now in the "Other Payroll Items" section of our paychecks.  Maybe that little step might help you... 

I ran into the same issues and with the help of a Certified QBs Pro, we discoved it just doesn't work. We have managed to find a work around until it is corrected. 

You must assign the New Company contribution code "Qualified OT Tracking to each employee's payroll set up that is eligible for OT.

When processing payroll manually calculate the .5 that is qualified and enter the dollar amount the company summary.  it is tracking the YTD.

Hope this helps.

To keep it from showing up in your pay liabilities screen, go to your "Payroll Item List". Select the "Qualified OT Tracking" item for edit. Select next until you reach the page titled "Agency for company-paid Liability". The Liability Account and Expense account should both be set as "Payroll Liabilities". When you hit next, a message will pop-up asking if you really want to do this, select yes. Continue hitting next until the end where you will select "Finish" to save.

I have been on the phone with Quickbooks a few times now. Qualified Overtime Compensation is NOT working.  I thought I might revisit it here as others may have gotten it to work now.  I have QuickBooks Enterprise Desktop.  Does anyone know how I can check how it was set up initially.  Manually per paycheck is not an option for me with 30 employees-mistakes might happen that way.  QuickBooks support has suggested I pay everyone the same rate or offer the same amount of overtime per paycheck.  These are also not viable solutions either.

I have spent several hours on this same problem.  But, my tracking is pulling ALL hours instead of just OT hours.  Suggestions?1?

I understand your frustration with the time you’ve spent resolving this issue, and I appreciate sharing it here in this thread. Qualified OT tracking does pulls all hours because it calculates total gross wages and ensures the overtime premium portion (the extra pay above the regular hourly rate, like $10/hour for time-and-a-half) is reported accurately. This is normal behavior and ensures compliance with payroll and reporting requirements, such as for W-2s.

For example:

"If an employee worked 40 regular hours at $20/hour and 5 overtime hours (time-and-a-half at $30/hour)"
 

• Regular Pay = 40 × $20 = $800
• 50% of $20 = $10/hour.

• Overtime Pay = 5 × $30 = $150

• Qualified OT (Premium Portion) = 5 × $10 = $50

To ensure the calculations are accurate:

• Check your payroll setup and make sure you have selected the correct overtime pay rate (1.5x or 2.0x). 
• In the Earnings section, be sure to enter regular hours and overtime hours separately. This helps keep calculations precise, ensuring that Qualified OT tracking accurately isolates the overtime premium.

Check out this article to learn more about Qualified Overtime tracking: Impact of the No Tax on Overtime provision to QuickBooks Payroll.

However, if you’d like to ensure your setup is accurate, I recommend contacting our QuickBooks Desktop Live support team. They have advanced tools, capabilities and can also use screen sharing to review your setup.

Please leave us a response if you have other questions or concerns.

I am confused as to why there is a liability account.  When I go to pay payroll liabilities, there is an amount to pay.  Why?

Hi there, @Katie4777. Amounts under Pay Payroll Liabilities are taxes to be paid. 

These are coming from the payroll transactions created.

If you have any other questions or require further assistance, please don't hesitate to reply below.

This quarter is working fine.  My first quarter did not process correctly - how do I fix this?  What issues will it cause if quarterly reports have been completed?

I check my payroll each week because it is odd how sometimes it doesn't work on some employees.

You can go back to an individual paystub and add it to each paystub it is missing from in the other payroll items section of the stub.

It will be time consuming if you have a lot of employees but it is easier to verify if weekly.  I think QBooks thinks they have fixed it but it is still happening on occasion.  

I asked QBooks about this at the beginning of the year and they said it is informational only.  Not sure why they  put if where they did as it makes things confusing.  Just ignore it.  It is not a liability.

To ensure the first quarter is accurate, please verify that all employees are correctly configured for the Qualified Overtime Compensation. If this requires an adjustment, you can edit the prior paychecks to move amounts between items. As long as you aren’t changing the total amount, there will be no impact on the employee’s taxes or net pay.

Additionally, you can adjust future paychecks by lowering the amount entered for one pay item and increasing the amount for another pay item.

For more details on what to expect once the quarterly reports are completed, please refer to this article: Impact of the No Tax on Overtime provision on QuickBooks Payroll.

Please let us know if you require further assistance.

I noticed last week that QOT was no longer tracking in the "Company Summary" portion of the Review Paycheck screen in my Accountant Desktop Plus version of Quickbooks.  I was able to adjust this for most of my clients, but I have come across one today that the YTD for QOT has reset to zero and this week's QOT is not being generated there.  YTD is not an editable box.  Is anyone else having this issue?  

The company portion does not display a calculation because this item acts as a non-calculating placeholder used only for reporting, not for funding a liability. Since it is not an active, company-funded tax, the YTD field in the Company Summary is not editable and may appear as zero.

As long as the dollar amount appears in the Employee Summary section of the paycheck detail, the system is correctly capturing the necessary data for year-end tax reporting.

If you have any other questions or require further assistance, please don't hesitate to reply below.

I got my Jan, Feb, Mar, & Apr paycheck with overtime to work by manually entering an Hourly overtime Payroll Item.  Fortunately, only 1 of our employees has the need for this.  However, when I tried to run this month's payroll, it ran an update and it seems that there was a new Qualified OT Tracking update that came through.  The paycheck now shows 2 Qualified OT Tracing lines under Other Payroll Items and 2 lines under the Company Summary and the YTD amounts are incorrect on both lines.  I requested a call back this morning and got a very nice young lady that has nothing to do with payroll, so put me on hold to the payroll department, which we finally cancelled, as I was trying to work though some ideas from the online comments and QB Help.   She said to go to help again and list payroll so it would connect directly to the payroll department.  It still showed I was next in line, so I selected the chat option - which got me to a payroll person, but after about 45 minutes with no responses back, I gave up and exited that and went back to have someone in payroll call me. 2 people that didn't know anything about payroll called me.

That window still shows that I'm next in line for a Callback after several hours.  Maybe everyone's payroll updated and is messed up again?