2025 Overtime Deduction Reporting
Hi everyone,
With the IRS shifting responsibility to employees for claiming the new federal overtime deduction in 2025, and no required changes to W-2 or W-4 forms we are now evaluating how to support our employees while making sure we comply.
We already track the 0.5× premium separately in PeopleSoft, so W-2 reporting shouldn’t be an issue, though we wish the IRS had updated the form this year. We are exploring options and would love to hear how others in the community are approaching this. Will you provide year end summaries or make any changes to the pay stub? What communication or training are you planning to help employees understand and claim the deduction? Appreciate any insights, thank you.