Tie-out tool / QuickBooks Desktop tracking item
QuickBooks Desktop Qualified Overtime Tracking: the amount to enter
Enter the half-time premium for hours worked over 40 in each workweek on the paycheck. At $20 an hour with 5 hours over 40, that is $50.00, not the $150.00 of overtime pay.
When the item has to be entered by hand
| Situation in QuickBooks Desktop Payroll | Tracking amount |
|---|---|
| Setup wizard answered yes: overtime is paid only for weeks over 40 hours, using the built-in Overtime item | Filled in when payroll runs; can be edited |
| Built-in overtime item at another multiple, such as double time | Calculated from the rate on the item above it |
| Setup wizard answered no: state law or company policy differs from the federal rule | Calculate and enter it yourself, per paycheck or as a year-end amount |
| Custom overtime pay items instead of the built-in one | Add the item to each employee and enter it yourself |
| More than one overtime item at different rates on a paycheck | Enter it yourself |
Source: Intuit help article, Impact of the No Tax on Overtime provision to QuickBooks Payroll, updated 25 August 2026. The article's own example matches the IRS formula: $20 an hour, 5 overtime hours, $50.00. Check the current article before relying on this table; software changes.
Amount per paycheck
| Hourly rate | 2 hours over 40 | 5 hours over 40 | 8 hours over 40 | 10 hours over 40 | 10 hours over 40 paid at 2x |
|---|---|---|---|---|---|
| $12.00 | $12.00 | $30.00 | $48.00 | $60.00 | $60.00 |
| $15.00 | $15.00 | $37.50 | $60.00 | $75.00 | $75.00 |
| $18.00 | $18.00 | $45.00 | $72.00 | $90.00 | $90.00 |
| $20.00 | $20.00 | $50.00 | $80.00 | $100.00 | $100.00 |
| $22.00 | $22.00 | $55.00 | $88.00 | $110.00 | $110.00 |
| $25.00 | $25.00 | $62.50 | $100.00 | $125.00 | $125.00 |
| $30.00 | $30.00 | $75.00 | $120.00 | $150.00 | $150.00 |
| $35.00 | $35.00 | $87.50 | $140.00 | $175.00 | $175.00 |
| $40.00 | $40.00 | $100.00 | $160.00 | $200.00 | $200.00 |
Formula: hours worked over 40 in the workweek x one-half x the regular rate. (IRS FS-2026-13, Q12) Double time gives the same figure as time-and-a-half, because only the half counts. (Q16)
Paychecks that cover two workweeks
Work out each workweek alone and add them. A biweekly paycheck for 30 + 50 hours has 10 overtime hours, not zero. See biweekly payroll.
Hours that do not count
- Holiday, vacation and sick hours do not count toward 40.
- Daily overtime in a week of 40 hours or fewer.
- Two rates in one week need the weighted average.
Checking the year before W-2s
Export the time data to a CSV, total the overtime pay item per employee, and run both through the tie-out tool. It rebuilds the figure per workweek and lists each employee whose tracked amount does not fit, with the reason.
QuickBooks is a trademark of Intuit Inc. This site is not affiliated with Intuit.
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
Is the tracking amount the overtime pay?
No. It is only the premium half. For overtime paid at time-and-a-half it is one third of the overtime pay for hours worked over 40.
Can I enter one amount at year end instead of on every paycheck?
The Intuit article describes a yearly amount on the last paycheck as an option. The amount still has to be built from each workweek.
Sources
- Intuit QuickBooks help: Impact of the No Tax on Overtime provision to QuickBooks Payroll (updated 25 August 2026)
- 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.