FLSA REPORT FOR OVERTIME WAGE REPORTING

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“No Tax on Overtime” - One, Big, Beautiful Bill

• New deduction: Effective for 2025 through 2028, individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay – such as the “half” portion of “time-and-a-half” compensation -- that is required by the Fair Labor Standards Act (FLSA) and that is reported on a Form W-2, Form 1099, or other specified statement furnished to the individual.

  • Maximum annual deduction is $12,500 ($25,000 for joint filers).

  • Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).

  • Reporting: Employers and other payors are required to file information returns with the IRS (or SSA) and furnish statements to taxpayers showing the total amount of qualified overtime compensation paid during the year.
    We are creating a report that lists all the employee’s paycheck with their regular and overtime hours as they were keyed.
    
    

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• Loading new report:
  Download this new report in compressed form. (at the top of this page)
  Unzip this file so all it’s contents is saved to Server\Agris\Support\Pay folder
  In AGRIS > Utilities > transfer Reports/Form > Transfer from Support.
  Select reports and payroll
  Select report to install
  Run report from AGRIS > Pay > report manager > advanced reports > user-defined.
  
  Download this compressed file >>>. STORED AT THE TOP OF THIS PAGE
  
  

• There are 5 reports. Use the one that meets your needs.
  You might use one for research then settle on a more simple one for actually handing to employee’s.

• If you need to “fix” numbers, then you must use the Year to Date Balances.
  we can add an adjustment balance to change regular and overtime wages without changing the overall pay totals.
  How to Edit Payroll Y2D Balances

Report type	Report Name	Details	Picture

Report type	Report Name	Details	Picture
Advanced Graphic Pay > report manager > advanced > user-defined	Overtime Deduction Report (consolidated) - TY2025	Prints one page per employee Lists all paychecks for a grand total Prints regular hours & pay. Prints Overtime hours & pay. Tests to see if they worked over 40+ hours a week. Prints 1/3 of their Overtime for use on tax return.	Open double click to preview
Paycheck report Pay > report manager > Payroll Check Reports > User-Defined	2025 Tax year Overtime Hours & Pay (Random.csv) Creates a spreadsheet for research.	prints all employees paychecks on CSV file that have overtime gross wages (Value Selection Criteria) Prints regular hours & pay. Prints Overtime hours & pay. Prints 1/3 of their Overtime for use on tax return. Worked over 40+ hour test not used.	Open double click to preview
Paycheck report Pay > report manager > Payroll Check Reports > User-Defined	2025 Tax year Overtime Hours & Pay Prints to paper.	Prints one page per employee. Prints only employees who have overtime HOURS. Prints regular hours & pay. Prints Overtime hours & pay. Prints 1/3 of their Overtime for use on tax return. Worked over 40+ hour test not used.	Open double click to preview
Year to Date Report Pay > report manager > year to Date Reports > user-defined	YTD Payroll Check Register - for Overtime FLSA	Prints one page per employee. Print all employees. (no value criteria) Prints the yearly balances. Prints Overtime hours and pay. Prints 1/3 of their overtime for use on tax return. No “over 40+ hours” test.	Open double click to preview
Year to Date Report Pay > report manager > year to Date Reports > user-defined	Simple Report - FLSA Number	Prints one page per employee. Print all employees. (no value criteria) Prints 1/3 of their overtime for use on tax return. No “over 40+ hours” test.	Open double click to preview

NOTE:

There is NOT a place to put the overtime wages on the W-2 for 2025.
For Tax Year 2025: Employers must provide a reasonable method of reporting overtime pay and are not required to use a specific box on the W-2, but the business can report the qualified overtime amount in Box 14 or on a separate statement.
It is NOT part of the electronic file that is reported to the IRS for 2025.

If you choose to put this on the W-2 form, the following steps must occur.

1. you will have to figure the deductible amount, which we provide a report for in AGRIS.

2. you will have to setup a deduction code to print this amount

3. you will have to create a user-defined W-2 form that prints this deduction code

4. you will have to key in the overtime wages in the YTD Balances with a manual edit.

This can be done but it is customized work and will be above a normal support call.