With the passing of the One Big Beautiful Bill Act (OBBB), the landscape of compensation has shifted dramatically. While the phrase "No Tax on Overtime" has dominated the headlines, the reality for payroll, HR, and accounting professionals is a complex web of specific deductions, eligibility caps, and rigorous reporting standards.

In 2026, the "grace period" for reporting is over. Employers are now required to use new IRS codes (Box 12, Code TT) to differentiate qualified overtime premiums from base wages. This webinar provides a deep dive into the technicalities of the law, helping you navigate the $12,500 individual deduction cap, the "premium-only" rule, and the critical distinction between FLSA-mandated overtime and contract-based premiums. We will move past the slogans to ensure your organization remains compliant while helping employees maximize their new tax benefits.

Learning Objectives:

By the end of this webinar, participants will be able to::

  • Calculate "Qualified Overtime Compensation" (QOC) by isolating the 0.5x premium portion required by the Fair Labor Standards Act.
  • Execute the new 2026 IRS reporting requirements, including the correct use of W-2 Code TT and the updated Form W-4 worksheets.
  • Analyze the impact of the $12,500/$25,000 deduction caps on different employee demographics to provide accurate internal guidance.
  • Differentiate between federal income tax exemptions and remaining obligations for FICA (Social Security/Medicare) and state/local taxes.
  • Mitigate classification risks by auditing "exempt" vs. "non-exempt" status, as the tax-free incentive increases the likelihood of misclassification disputes.

Information covered in the presentation:

  • The "Premium" Distinction: Why only the "half" in "time-and-a-half" is tax-deductible, and how to audit your payroll to separate base rates from qualified premiums.
  • 2026 Reporting Mandates: Transitioning from the 2025 "reasonable method" to mandatory Box 12, Code TT reporting on W-2s.
  • Income Caps & Phase-outs: Navigating the $150,000 MAGI threshold ($300,000 for joint filers) and how it affects employee withholding strategies.
  • The FLSA Trap: Understanding why overtime paid under state laws or collective bargaining agreements (that exceed federal FLSA requirements) may not qualify for the deduction.
  • Employee Communications: How to explain to staff why they still see Social Security, Medicare, and State taxes being withheld from their "tax-free" overtime.

Who Will Benefit:

  • HR Managers
  • Payroll Managers
  • Budget Personnel
  • HR and Payroll Compliance Managers
  • Department Managers
  • Fringe Benefit and Travel Staff

Credits and Other information :

  • SHRM | HRCI: 1.0
  • Location: Virtual/Online
  • Delivery method: Group Internet Based
  • Attendance Requirement: Yes
  • Session Duration: 60 Min
  • Case Studies and Live Q&A session with speaker

HRCI Credits | SHRM Credits

  • SHRM | HRCI: 1.0
  • HRCI Credits:
  • SHRM Credits:

Taxmarket Watch is recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CPSM or SHRM-SCPSM. This program is valid for 1.0 PDCs for the SHRM-CPSM or SHRM-SCPSM. For more information about certification or recertification, please portal.shrm.org.

HR Certification Institute’s® (https://www.hrci.org) official seal confirms that Taxmarketwatch meets the criteria for pre-approved recertification credit(s) for any of HRCI’s eight credentials, including SPHR® and PHR®.

This Program, has been approved for 1.0  HR (General) recertification credit hours toward aPHR®, aPHRi™, PHR®, PHRca®, SPHR®, GPHR®, PHRi™ and SPHRi™recertification through HR Certification Institute® (HRCI®).

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4. Is there an opportunity to ask questions to the speaker during the session?

Each webinar wraps up with a Q&A session, giving you the opportunity to interact with industry experts and receive answers to all your queries.

5. We provide the following CE credits to the professionals on the approved courses.

  • IRS
  • HRCI
  • SHRM

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Your educational credits will be reported to the appropriate licensing and regulatory bodies within 5-7 business days

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