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Deductible Overtime Report

Deductible Overtime Report

The Deductible Overtime Report will provide a breakdown of overtime hours that may be deducted from federal income tax years 2025 - 2028 (according to the OBBBA).

 

To access this report:

  1. Click on the ‘Reports’ icon from the Main Menu, or from the tab

  2. Select ‘Deductible Overtime’.

  3. Using the filters select specific pay periods and weeks, or select a date range to compile data.

 

According to OBBBA Qualified Overtime Pay, only the hours worked in a week count towards overtime eligibility (therefore excluding non-working hours like holiday, time off, unpaid time to be factored into overtime calculation).

 

Examples

  1. Employee has 36 hours Regular time, 4 hours OT (early call in, premium pay, etc), 3 hours comp TAKEN

    1. The 4 hours of OT are not deductible as the employee did not have a total over 40 with ‘working’ hours (regular + OT)

    2. nothing will show on the deductible OT report

  2. Employee has 36 hours Regular time, 4 hours OT (early call in, premium pay, etc), 3 hours comp EARNED

    1. The 36+4+3 = 43. All three types are consiered ‘working’ hours, therefore, the hours over 40 are considered deductible.

    2. 3 hours will show on the deductible OT report