Reporting Qualified Overtime and Tips

Use the Qualified Tips and Overtime form to update the annual data for qualified overtime and qualified tips to report them in the employee Form W-2 for the tax year This option is provided to support federal reporting and compliance requirements supporting the One Big Beautiful Bill Act (OBBBA). For more information, please visit the article named OBBBA No Tax Setup Guide on the Customer Resource Center. If an employee works for multiple clients in a tax year, this form will report information for the active client only. If an employee works for multiple clients in the same employer, then Box 14 will have combined amounts when built on the employer. W2 data will be aggregated by employer if applicable. If an employee works between multiple positions, you should determine a single TTO Code for reporting purposes.

Box 14 of the employee Form W-2 reports the qualified tips and overtime dollar amounts against the following applicable designations for SBEA and employer builds:

• Approx Qualified OT
• TTOC <TTO Code1>; Cash Tips

Note:  You cannot access this form using the search bar.

To access this form for an employee, select the employee in the Employee Details form. From the Actions menu, select the Qualified Tips and Overtime form for the employee for the client.

Note: This information can also be added via the Data Import Tool.

To report qualified overtime and tips for an employee for an active client:

1. Complete the following fields:

Field Name

Description
Employee ID

This field is auto-populated with the Employee ID from the Employee Details form.
Client ID

This field is auto-populated with the active Client ID.
Employer ID

If the employee has more than one employer for the active client in the tax year, select the Employer ID for the list of employer IDs available in the drop-down. This list will populate the main employer for the client and any alternate employer assigned to the client.
Entity ID

If the active client is set up to have a Client Federal Entity, it will display here.

Note: If the client was cloned from another client prior to the option to clone the Client Federal Entity on the utility, you may see a federal entity when there should not be. If this occurs you should remove the entity on the client by following the steps listed here.

Year

Select the tax year.

TTO Code

Enter the TTO Code (Tipped Taxable Occupation Code) manually, or you can click the TTO Code hyperlink and select it from the TTO Codes dialog.
TTOC Tip Amount Enter the TTOC Tip Amount for the corresponding TTO Code.
Premium OT Amount Enter an approximate premium portion of overtime, if applicable.
2. Click Save to save the record.
3. Click Cancel to clear the form. Changes made to this form will be removed, but the auto-populated fields will display as is.
4. Click Delete to delete the record.
5. Click Close to close this form at any time.