national · laws
IRS now requires overtime pay tracked separately on W-2 forms
Original headline: “New IRS overtime rules are now in effect: What restaurants should know”
Why this matters
New federal rules tied to the 'No Tax on Overtime' policy require employers to report eligible overtime wages as a distinct line item on workers' W-2 forms. For restaurants running high hourly headcounts and heavy weekend or holiday OT, this is a payroll-setup change, not just a tax-season change. If your payroll processor or POS labor module is not already flagging and categorizing overtime separately, your W-2s at year-end will be wrong. The compliance risk lands on you as the employer.
What to do
Call your payroll provider this week and confirm overtime wages are being coded and tracked separately in the system before another pay period closes.
Reveal Newsroom · Auto-published from nrn →
Published Wed, 19 Aug 2026 20:08:16 GMT