W-2 code TT: Piece-rate and day-rate pay
Short answer: For piece-rate or day-rate pay the regular rate is the week's earnings (plus waiting time and bonuses) divided by hours worked, and code TT is half of it for each hour over 40.
Example
Piece earnings of $523 for 50 hours give a regular rate of $10.46 and code TT of 0.5 × $10.46 × 10 = $52.30 (the example in 29 CFR 778.111). In the calculator choose hourly and enter $523 as straight-time pay.
Piece earnings of $523 for 50 hours give a regular rate of $10.46 and code TT of 0.5 × $10.46 × 10 = $52.30 (the example in 29 CFR 778.111). In the calculator choose hourly and enter $523 as straight-time pay.
The rules
- Piece rate: total earnings ÷ hours worked (29 CFR 778.111). Day or job rate: sum of the rates ÷ hours worked (29 CFR 778.112).
- The regular rate can't be below the minimum wage.
Work it out for your payroll
The free code TT calculator does this per workweek for one employee or a whole payroll CSV, with bonuses spread back and weeks split by pay date. It runs in your browser.
The free code TT calculator does this per workweek for one employee or a whole payroll CSV, with bonuses spread back and weeks split by pay date. It runs in your browser.
Sources
- IRS FS-2026-13: Qualified overtime compensation FAQs (August 2026)
- eCFR: 29 CFR 778.111
- eCFR: 29 CFR 778.112
Not tax or legal advice. Facts checked 27 Oct 2026 against the IRS FAQs (FS-2026-13) and the FLSA regulations.
Did this fix it?