OBBBA
Although employees think they shouldn't pay taxes on these two types of earnings in a per-payroll basis, in reality they will receive credit when they go to file their taxes.
What is Qualified Overtime and Tips?
Remember - the no tax is on the premium only!
Christmas is on a Friday this year! Since both Checkwriters and banks will be closed that day, clients who normally process for Fridays will have their check dates moved to this day.
What is Thursday?
A recent change to this state's PFML plan now requires employers who cover the entire contribution to record the amounts as taxable wages on employees' W2s.
What is Massachusetts?
A client whose PTO code with a When Cleared date of 1/1 should expect their balances to clear on this date.
What is the first payroll on or after 1/1?
Qualified tips will be reported in Form W-2 Box 12 using code TP. In addition to this, an employee will need to have this reported in Box 14b.
What is a Treasury Tipped Occupation Code (TTOC)?
For clients wanting to avoid potential correction and amended return fees, this is the last date we can process year end items for 2026.
What is December 31st?
Accrual updates during payroll processing always follows this order.
What is Use, Clear, Transfer, Accrue?
A client needing to review their qualified overtime, tips, and tipped occupation codes will be able to run this report in Checkwriters to help in the process.
What is the OBBBA Audit Report?
A client processed both their regular payroll and a bonus payroll for a Monday check date. Their tax liability is well over $100k and must be deposited by this day.
What is Tuesday?
An employer in Vermont has an employee working fully remote in Florida. Which state should the employee's wages be reported to?
What is Florida?
When setting up a per hour accrual, these three items need to be set up to calculate properly.
What is the accrual rate, the Accrue On field, and the Per Hour checkbox?
OBBBA was first effective in Tax Year 2025. It will remain in place until this Tax Year.
What is 2028?
Although clients will be asking for their W2s on January 2nd, they are not required to provide or postmark them to employees until this date.
What is January 31st?
Not only do you have to be careful with some of the wildlife in this northern state, payroll professionals need to be sure to take into account their overtime law as well as a requirement to include Standard Occupational Classification codes on quarterly filings.
What is Alaska?
The system checks this field on an employee's accrual during every payroll process to see if they need to earn hours.
What is the Last Accrue Date?
For clients wanting to track the OT premium only in Checkwriters to provide to employees, they can use an earning code with this pay type selected (which will then populate on the W2).
What is MemoQOT - Memo Qualified Overtime?
Form 941 gets filed quarterly by this due date 4 times a year!
What is the last day of the month following quarter close?
An employer can withhold taxes based off where the employee lives so long as the state where the business operates has a reciprocity agreement with the employee's home state. This state has the highest number at 7, which includes Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia, and Wisconsin!
What is Kentucky?
Going into the new year, this accrual code has special logic applied that will automatically update an employee's Accrual Max field based off their carryover going into the new year.
What is MASick?