2025 YE Payroll ESU details
We have a client that we have installed the 2025 YE Payroll ESU. With the new MOSC format, we are having difficulty accessing the Bug Details to respond to a question from them. Similarly, searches in MOSC for JD Edwards KB haven't yielded any results.
Background: Beginning with tax year 2026 (i.e., W-2s issued in January 2027), employers must report qualified overtime compensation separately on Form W-2 using a new code: Box 12 Code “TT” — Total amount of qualified overtime compensation (the overtime premium, not full overtime wages).
This is new with the latest Tax code changes. We think it is optional for 2025 reporting but will be mandatory for 2026 reporting .