Express Tax

Ooooh! Don't let this happen to you! Come to professionals right from the start! 😂😂😂

Tip of the day to employers on "NO TAX ON OVERTIME". If you wish to show it in box 14 of the W2 there is one of 2 ways you can show it.

1. "Full OT" - Then the $ amount of the entire 1 1/2 pay. It needs to be this way so that we know that we need to calculate the tax free part.

2. "OBBB OT" - Then the $ amount of just 1/2 portion of the OT. Everything that was above their normal rate of pay. The "NO TAX ON OVERTIME" ONLY applies to the 1/2 portion.

Also be aware that this ONLY applies to actual OT. Time and half pay for working holidays or special events or anything like that does not qualify for the OT. It is ONLY the OT worked that is qualified by the Fair Labor Standards Act (FLSA).

None of us would like employees getting contacted down the road, owing money back to the IRS, because there was OT that was not taxed, that should have been.

Please pass this on to any business owners that you know that have W2 employees.