Does OnPay report W-2 code TT?
Short answer: Partly. OnPay calculates and reports the qualified overtime premium on pay stubs and the W-2, provided you enter the "OBBB Qualified OT" hours in every pay run, even when hours are imported from time tracking.
| Calculates code TT itself | Partly |
|---|---|
| What it uses | In each pay run, after Overtime and Double OT hours, enter the OBBB Qualified OT hours (the legacy pay run calls the box OBBB Qualified Hours). OnPay works out the premium from them. |
| Check the amount | Use Preview Check in the pay run: qualified overtime hours appear separately from overtime and double overtime on the pay stub. |
What to watch
- Overtime owed only under state or local law (for example California daily overtime) must not be entered as qualified overtime.
- Qualified hours can't be more than Overtime plus Double OT hours, and OnPay says not to use custom pay items for overtime.
- OnPay's overtime article (March 2025) says it uses a weighted average rate only on weekly pay schedules, and that bonuses and commissions are not factored into its overtime calculations: check employees with several rates or bonuses yourself.
- OnPay states it is the employer's responsibility to report qualified overtime hours accurately.
Check the number before the W-2 goes out
Export hours and earnings per workweek and run them through the free code TT calculator. It rebuilds the FLSA premium week by week (several rates, bonuses spread back, fluctuating workweek, weeks split by pay date) and runs in your browser. Big gaps usually come from bonuses, double time or state daily overtime.
Export hours and earnings per workweek and run them through the free code TT calculator. It rebuilds the FLSA premium week by week (several rates, bonuses spread back, fluctuating workweek, weeks split by pay date) and runs in your browser. Big gaps usually come from bonuses, double time or state daily overtime.
Whole payroll, offline? The W-2 Code TT Kit runs every employee in one file with no network access, plus CSV templates, the week-by-week audit trail and a 12-page guide to every rule.
Get the kit ($29, accountants $99)
Get the kit ($29, accountants $99)
Sources
- OnPay: Entering OBBB qualified overtime during a pay run
- OnPay: No tax on overtime, federal tax deduction on qualified overtime
- OnPay: Overtime calculation for multiple pay rates
From OnPay's own help pages, checked 27 October 2026. Payroll products change often: the vendor's page wins. Independent page, not affiliated with OnPay. Not tax or legal advice.
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