New Overtime Law starting 2025 and QB

@NewUser777  While Quickbooks appears to be trying to implement something for reporting the deductible portion of Overtime, it does not appear to be there yet.

Given that another thread on here indicates they are two years in without catching up to the updates on IRA law, I wouldn't hold my breath. I expect we'll need to manually create reports for this, or include it somewhere in Box 14, also manually.

Thanks for reaching out, @NewUser777. This is a great question with the 2025 overtime changes coming into play.

QuickBooks will continue to calculate overtime based on the rules you’ve set up, such as daily overtime after 8 hours, Saturday overtime, or double-time on Sundays. Those calculations won’t change.

What’s important to know is that the new 2025 rules define “qualified overtime” based only on overtime required under federal FLSA guidelines — generally anything over 40 hours in a week. The recent QuickBooks payroll update confirms that state or company policies, like daily overtime or weekend rates, don’t qualify unless the employee also works more than 40 hours that week. Because of that, QuickBooks does not automatically determine whether the overtime you paid is qualified or non-qualified for tax reporting. It simply records the overtime hours you enter.

So in your example, if an employee works 24 hours total with 4 hours of daily or weekend overtime, QuickBooks will calculate that overtime correctly, but it won’t flag those hours as “qualified overtime” since the employee didn’t cross the 40-hour FLSA threshold.

To help you prepare year-end records for your team, QuickBooks Desktop offers several built-in payroll reports that summarize regular, overtime, and double-time hours. You can review how to run these reports here:

Run payroll reports in QuickBooks

If you need anything else, feel free to reach out! We’re here to help you stay confident and prepared.