Determining OBBBA reportable premium amount

The Determine OBBBA Reportable Premium action calculates employees’ overtime premium amounts for the specified payroll year and report option.

  • For tax year 2026 or later, these values are displayed in the Box 12 Amount and Description fields of the generated W-2 CSV file.
  • For tax year 2025 or earlier, these values are displayed in the Box 14 Amount and Description fields of the generated W-2 CSV file.
  1. Select Payroll > Administration > Reports.
  2. In the US Regulatory pane, click Year End.
  3. In the Processing pane, click Determine OBBBA Reportable Premium.
  4. Specify this information:
    Report Option
    This value determines how the employee’s total overtime premium amount is reported. Select one of these options:
    • Employee Timerecord Premium Amount: Select this option if the employee’s historical time records’ payment schedule setup is FLSA compliant to accumulate all the employee’s historical time records tied to the Overtime Pay Class in Time Entry Organizations’ setup with overtime premium amount for the payroll year.
    • Determine OBBBA OT Reportable Premium: Select this option to redetermine employee’s eligible wages and hours to determine the total overtime premium amount for the payroll year, based on the OBBBA payment schedule’s overtime options and work periods.
    Payroll Year
    Specify the reporting year.
    Box 14 Description
    Specify the OBBBA Overtime Premium Amount description.

    This value is stored in the Employee Year End Parameters' OBBBA Overtime Premium Amount Description.

    This field only applies to tax year 2025 or earlier. For tax year 2026 or later, leave this field as blank.

    Overtime Pay Class

    Select the pay class that filters overtime premium calculations.

    • The system includes overtime premiums that are associated with the selected pay class.
    • The system excludes amounts that are not overtime premiums.
    • If the selected pay class has no associated pay summary groups that contain overtime premiums, the result is zero.
    • If the selected pay class has multiple associated pay summary groups, the system accumulates overtime premiums from all associated groups.

    Leave this field blank to accumulate all overtime premiums for pay summary groups that are linked to the overtime pay class that is configured in the time entry organization.

    Note: When you rerun the Determine OBBBA Reportable Premium action with a different pay class, the system recalculates the value and replaces the previously stored value in the employee's year end parameters.
    Run Option
    This value applies only when you select the Employee Timerecord Premium Amount report option. Select one of these options:
    • Legal Entity: Processes all historical time records for the selected legal entity. If you select this option, you must also select a valid legal entity in the Legal Entity field.
    • Report All: Processes all historical time records for all the legal entities in the organization. If you select this option, you must leave the Legal Entity field blank.
    Note: Employees are selected based on the legal entity stored in historical payment records for the payroll year being processed.
    Legal Entity
    Specify a legal entity.
  5. To generate the report and update the Employee Year End Parameters records, click Submit.
    Note: A record is created in the OBBBA Overtime Premium Reports list. The Payroll Administrator can select that record and double-click the Employer header to view the OBBBA Overtime Earnings for each employee included in the processing.
  6. Review the report and verify the Total Overtime Premium Amount.
  7. Go to Administration > Reports > US Regulatory > Year End > Setup > Employee Configurable Fields > Employee Year End Parameters > OBBBA Codes.
    • For tax year 2026 or later, check the Code TT Total Qualified Overtime Compensation value.
    • For tax year 2025 or earlier, check the Box 14 Overtime Premium Amount and Description values.