2026 Box 12 Code TT — what the W-2 should say

Only the FLSA half-premium belongs in Code TT. Payroll exports put the whole time-and-a-half there.

Correct Box 12 Code TT per employee$
What your export writes into Box 12$
Overstatement per W-2$
Overstatement across the payroll$
State-only premium correctly excluded$
Deduction the employee may actually take$
Deduction overclaimed from the wrong W-2$
IRC 6721 + 6722 exposure$
Keep this audit: .csv export + a 2027-02-01 furnish alarm
Every figure above is free, unlimited, no key. The $60 key adds a different thing: a per-employee .csv you keep in the payroll file, and a browser alarm before the 2027-02-01 W-2 furnish date. $60 once · one licence key per person or team seat · 7-day full refund. Getting Box 12 wrong costs $340 under IRC 6721 plus $340 under IRC 6722 per W-2.
Get the full version — $60
FLSA half-premium only
Splits the one-half premium required by 29 USC 207 from the straight-time hours, because only that half is qualified overtime compensation under IRC 225.
State-only daily overtime excluded
Daily overtime hours that a state (California 8+/day, Alaska, Nevada, Colorado) requires but the FLSA does not are not qualified overtime — they are removed from the Code TT figure.
Payroll export drift
Shows what a payroll export writes into Box 12 when it maps the whole overtime gross, and the dollar overstatement per employee and across the company.
2026 deduction and phaseout
Applies the $12,500 / $25,000 cap and the $100-per-$1,000 MAGI phaseout above $150,000 / $300,000 so you can see what the employee may actually deduct.
6721 + 6722 exposure
Multiplies the affected headcount by both the information-return penalty and the payee-statement penalty, which apply separately to the same wrong form.
Furnish deadline
Anchors the numbers to 2027-02-01, the date 2026 Forms W-2 must be furnished and filed, since January 31, 2027 falls on a Sunday.

Get the complete version $60

This page is the working piece. The full pack has everything below.

Only the FLSA half-premium belongs in Code TT. Payroll exports put the whole time-and-a-half there.

$340 under IRC 6721 plus $340 under IRC 6722 per wrong W-2 — $16,320 across 24 employees.

Buy the full version — $60

Questions people ask

What does this extension actually do?

It takes your regular rate, the hours over 40 in a workweek, and any state-only daily overtime hours, and returns the figure that belongs in 2026 Form W-2 Box 12 Code TT: the one-half FLSA premium. It then shows what a payroll export writes there instead, the dollar gap per W-2, and the IRC 6721 and 6722 penalty exposure on that gap.

Who is this for?

US payroll administrators, bookkeepers and controllers who run weekly payroll for non-exempt hourly staff — restaurant groups, manufacturing plants, clinics, contractors. It matters most in California, Alaska, Nevada and Colorado, where daily overtime is paid but is not FLSA-required, so it does not belong in Code TT.

Why not just ask a chatbot or use a free overtime calculator?

Free overtime calculators total gross overtime pay, which is the number you must not report. Chatbots answer with the full time-and-a-half and rarely separate state daily overtime from FLSA overtime. Neither applies the $12,500 cap, the $100-per-$1,000 phaseout above $150,000, or the doubled 6721 plus 6722 penalty on the same wrong form.

What is free and what does the $60 key add?

Every calculation is free and unlimited, in the popup and on the web page: correct Code TT, overstatement, deduction after phaseout, penalty exposure. The $60 key adds a different thing, not more of the same — a .csv export of the per-employee audit you keep in the payroll file, and a browser alarm before the 2027-02-01 furnish date.

What would this cost me if I got it wrong?

For returns required to be filed in 2026 the top-tier penalty is $340 per information return under IRC 6721, and a separate $340 per payee statement under IRC 6722. A 24-employee payroll with the wrong Box 12 figure on every W-2 carries $16,320 of exposure, against $60 once for the key.

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