The IRS says no penalty relief applies after 2025. A wrong code TT or TP means a corrected W-2c for that employee.
Qualified overtime is the half-time premium on hours over 40 in a workweek, at the federal regular rate. California daily overtime and most double time fall outside it. In the IRS's own example, $400 of double-time pay is $100 of qualified overtime.
Commissions and nondiscretionary bonuses go back into the regular rate for the weeks they were earned, which changes the qualified amount.
Hours paid through a previous provider or an off-cycle run can be missing from the figure your current provider prints.
Code TP carries the cash tips employees report to you, and box 14b their Treasury occupation code: up to two, plus 000 if any tips came from a job not on the list. The list covers bartenders and wait staff, hairstylists, estheticians, massage therapists and fitness instructors.
Send exports from your time clock and payroll. We send back three things.
Federal weekly overtime for every employee from time punches and pay, plus cash tips and occupation codes.
Every employee whose code TT, code TP or box 14b differs from what payroll will print, with the weeks behind it.
Each difference explained in plain words, with the calculation, ready for your team to decide.
| Record | Box | Payroll | Recomputed | Why |
|---|---|---|---|---|
| ANON-0142 | 12, code TT | 1,840.00 | 1,212.50 | State daily overtime counted as federal |
| ANON-0387 | 12, code TT | 410.00 | 468.00 | Bonus left out of the regular rate |
| ANON-0519 | 12, code TT | 0.00 | 288.00 | Weeks paid by the previous provider |
| ANON-0604 | 14b | blank | 102 | Tips reported, no occupation code |
W-2s already out? The same check gives you a list of W-2c corrections.
Monitoring runs the same check after every 2027 payroll. A wrong rate gets fixed in the next paycheck instead of on a W-2c, and the last run is your check before the 2027 W-2s.
Restaurants, salons, studios, spas and care providers, in every state. The gap is widest where state law adds daily overtime or double time, as in California. The check runs on the engine behind our wage and hour audit.
No. We give you calculations and the math behind each one. Your payroll team and counsel decide what goes on the W-2.
Your 2026 time punches and payroll registers, as exports from the systems you already use. No logins.
Days, not weeks, once the exports arrive. Start early: W-2s are due February 1, 2027.
Then the check becomes a list of W-2c corrections, with the math for each.
A fixed fee, quoted before we start. It depends on how many W-2s you issue and how many payroll systems you used in 2026.
Tell us about your locations and payroll, and we'll reply with what we need and a quote.