BusinessPlus Year End

FLSA Overtime Reporting on W-2 Forms

Enhancements have been made to payroll to support calculation and reporting of FLSA Overtime on W‑2 forms. These changes apply if qualified FLSA overtime CDHs are already set up and in use. If you already did this set up for a prior year, it will remain for subsequent years. Review for accuracy.

Instructions

  1. Assign Overtime Keywords

  • Use the following overtime values:

    • HRSD - amounts accumulated for Double-time which will be divided by 4 when the entire overtime amount is in the CDH.

    • HRSO – amounts accumulated for Time and a Half Overtime which will be divided by 3 when the entire overtime amount is in the CDH.

    • HRSP – amounts accumulated for JUST the Premium portion of Overtime (the Half) will be reported as is.

    • HRST – amounts accumulated for Triple-time which will be divided by 6 when the entire overtime amount is in the CDH.

  • Add these values into the designated MISC code field of the appropriate FLSA hour code. You may use any of the Misc Code fields in PYUPHH to identify and store the overtime value. The key is to pick a misc code field that is unused across all seven applicable hour codes.

  1. Update W‑2 Definition File

  • Navigate to the Value Field Definitions tab.

  • Define a new Value Field named OVERTIME.

  • Under Ded/Cont, set the Misc Code to the designated code used above.

  • Add the new overtime values (HRSD, HRSO, HRSP, HRST) to the Deduction Qualifier if you use them.

  1. Configure Common Code

  • Locate common code PYW2/BOX12xx.

  • Add the keyword OVERTIME in the Associated Description field.

  • Set the Associated Codes field to TT.

These updates ensure that overtime hours are properly tracked and reported in Box 12 of the W‑2 form, meeting FLSA compliance requirements for reporting.