Is Overtime Taxed? OBBBA Overtime Rules Explained
Yes, overtime is still compensation, and employers generally withhold taxes from it. What changed under recent federal “no tax on overtime” style rules (often discussed with OBBBA / One Big Beautiful Bill Act coverage) is how some overtime may be treated for federal income …
W-2 Box 12 Code TT Explained
Form W-2 Box 12 is where employers report special wage amounts using letter codes. Code TT is the overtime-related Box 12 code workers look for when federal rules require separate reporting of qualified overtime for “no tax on overtime” style benefits. Seeing TT does not mea…
FLSA Blended Overtime Rate Explained
A blended overtime rate (also called a weighted-average regular rate) is how many employers correctly pay FLSA overtime when you work at more than one hourly rate in the same workweek, or when shift differentials and similar premiums change what you earn hour to hour. Instead o…
What Is Shift Differential Pay?
Shift differential pay is extra compensation for working less desirable hours, nights, evenings, weekends, or rotating shifts. Employers use a percentage of base rate or a flat dollar add-on per hour. It is still wages: it shows on your paycheck, usually counts toward overtime c…