FLSA Overtime Reporting on W-2 Forms - 2025 only

Enhancements have been made to payroll to support reporting of FLSA Overtime on W‑2 forms for 2025 reporting. These changes apply if qualified FLSA overtime CDHs are already set up.

Instructions

1. Assign New Overtime Keywords

• Use the following new overtime values:

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

  • HRSO – amounts accumulated for Time and a Half Overtime which will be divided by 3 if 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.

• Add these values into the designated MISC code field of the appropriate FLSA hour code. 

2. 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) to the Deduction Qualifier. 

3. Configure Common Code

• Locate common code PYW2/BOX14xx.

• Add the keyword OVERTIME in the Associated Description field.

• Set the Associated Codes field to OT.

These updates ensure that overtime hours are properly tracked and reported in Box 14 of the W‑2 form, meeting FLSA compliance requirements for 2025 reporting.