Tie-out tool / Overtime pay to Code TT
Overtime pay to Code TT converter
At most one third of time-and-a-half pay and one quarter of double-time pay is qualified overtime. $900 of overtime paid at 1.5x holds at most $300 of Code TT.
Lookup table
| Overtime pay on the register | Most Code TT if paid at 1.5x | Most Code TT if paid at 2x |
|---|---|---|
| $300.00 | $100.00 | $75.00 |
| $600.00 | $200.00 | $150.00 |
| $900.00 | $300.00 | $225.00 |
| $1,500.00 | $500.00 | $375.00 |
| $3,000.00 | $1,000.00 | $750.00 |
| $6,000.00 | $2,000.00 | $1,500.00 |
| $9,000.00 | $3,000.00 | $2,250.00 |
| $15,000.00 | $5,000.00 | $3,750.00 |
Why one third and one quarter
Time-and-a-half pay is 1.5 times the regular rate. The 1.0 is straight time; only the 0.5 is premium, and 0.5 is one third of 1.5. Double time is 2.0 times the rate, but the law requires only the 0.5, so one quarter of the pay counts. The IRS example: 10 double-time hours at $20 cost $400, and the qualified overtime is $100. (IRS FS-2026-13, Q12 and Q16)
Why the real figure can be lower
The converter gives a ceiling. Overtime dollars drop out completely when the hours were not worked over 40 in the workweek:
- Holiday or leave hours pushed paid hours past 40.
- A state daily overtime rule paid a premium in a week of 40 hours or fewer.
- Overtime was counted over 80 hours in a pay period instead of over 40 in a workweek.
It can be higher than the ceiling only when the regular rate is above the base hourly rate, for example with a non-discretionary bonus or two pay rates.
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
Can I report one third of overtime pay as Code TT for 2026?
Not as a method. For 2026 the IRS formula works from hours worked over 40 in each workweek and the regular rate. One third of time-and-a-half pay is the result only when every overtime hour was worked over 40 at one hourly rate.
What share of double-time pay is qualified overtime?
One quarter. Double time pays 2 times the rate and only the half-time premium the federal law requires counts.
Sources
- IRS Fact Sheet FS-2026-13, qualified overtime questions and answers (August 2026)
- IRS, General Instructions for Forms W-2 and W-3 (2026)
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.