Tie-out tool / Code TT does not match the register
Why Code TT doesn't match the payroll register
It should not match. The register shows all overtime pay. Code TT is only the half-time premium that federal law requires for hours worked over 40 in a workweek, paid during the year.
Code TT is the new W-2 box 12 code for qualified overtime. The IRS defines it as overtime pay required by section 7 of the Fair Labor Standards Act (FLSA, the federal wage law) that is more than the regular rate. The W-2 instructions put it this way:
For example, only the “half” portion of “time-and-a-half” compensation would be reported using code TT.
(IRS W-2 instructions, 2026, box 12 code TT)
The reasons, largest first
| Reason | What the register shows | What goes in Code TT | Rule |
|---|---|---|---|
| Half-time only | 10 overtime hours at $30 = $300 | 10 x $10 = $100 | FS-2026-13, Q12 |
| Double time | 10 hours at $40 = $400 | $100 (the half, not the full extra) | FS-2026-13, Q16 |
| Holiday or PTO hours | 36 worked + 8 holiday, 4 hours paid as overtime | $0, because 36 hours were worked | 29 CFR 778.218 |
| State daily overtime | Four 10-hour days, 8 hours paid at 1.5x | $0, because 40 hours were worked | FS-2026-13, Q16 |
| Pay period is not the workweek | Overtime counted per pay period (over 80, over 86.67) | Counted per workweek, each one alone | 29 CFR 778.104 |
| Payday timing | Overtime worked in late December | Belongs to the year it was paid | FS-2026-13, Q3 |
Dollar examples use a $20 hourly rate.
How to trace a difference
- Rebuild hours worked per workweek from the timesheet, not from the pay period.
- For each week over 40, take the hours over 40 x half the hourly rate.
- Add up the weeks whose payday fell in 2026.
- Explain the gap to the register line by line. What is left is a real error or a manual adjustment.
The tie-out tool does these four steps from a timesheet CSV and prints the worksheet.
Do the whole year from a file
Drop a timesheet CSV, paste the register overtime totals, and get a worksheet per employee with the reason for every difference.
Open the tie-out toolRuns in your browser. Payroll data is never uploaded.
Questions
Should Code TT ever equal the overtime total on the register?
Almost never. With plain time-and-a-half and no other differences, Code TT is one third of the overtime pay, because the register shows 1.5 times the rate and Code TT is 0.5 times the rate.
Can I estimate Code TT for 2026?
For tax year 2025, Notice 2025-69 gave relief from separate reporting. FS-2026-13 says no relief is available for tax years after 2025, and employers must report the amount paid in box 12 with code TT.
Sources
- IRS, General Instructions for Forms W-2 and W-3 (2026)
- IRS Fact Sheet FS-2026-13, qualified overtime questions and answers (August 2026)
- 29 CFR 778.218, pay for certain idle hours
- 29 CFR 778.104, each workweek stands alone
Fetched 2026-11-10. Regulation text was checked against the federal annual edition; links open the current online version.
Updated 2026-11-10. Tickfoot is an information tool, not tax, legal or professional advice.