User Support Forum

How should I post overtime in 2025 in light of the new bill that recently passed, that if I understand correctly is retroactive to Jan 1, 2025? Specifically, it must be reflected on the employee's w2. We pay non exempt employees a salary, and if they work over 40 hours in a week, then also overtime. Should I enter their overtime wages as a separate item?

chutcherson wrote: ↑

Tue Jul 08, 2025 4:16 pm

How should I post overtime in 2025 in light of the new bill that recently passed, that if I understand correctly is retroactive to Jan 1, 2025? Specifically, it must be reflected on the employee's w2. We pay non exempt employees a salary, and if they work over 40 hours in a week, then also overtime. Should I enter their overtime wages as a separate item?

I suspect that the IRS is busy creating rules/regulation updates to handle this. I also suspect that Powerchurch is waiting to see what they say before making any changes, so for now, I'd create a separate pay item to handle the overtime pay, and make it non-taxable for Federal income tax, not sure if that will include Social Security, but I doubt it. I suspect that states will continue to tax that income, so make sure its taxable for that.