1 Add payroll files
Add the payroll registers for the whole year (from every provider used this year), an hours file with daily or weekly hours if your pay periods are longer than one week, and optionally the provider's year-to-date code TT / TP report. Guides
No file handy?(two providers, a mid-year switch, bonuses, California daily overtime, tips in several occupations)
Calculation settings
The tax year is 2026: amounts count by pay date (FS-2026-13 Q3). The FLSA threshold is 40 hours per workweek.
2 Employees
Set each person's FLSA status. Only nonexempt hourly employees are computed. Optional: tip credit per hour (FLSA tip credit is part of the regular rate, 29 CFR 531.60), a default occupation code for tips, and the provider's year-to-date amounts if you don't have a provider totals file (these override the file).
Add files first.
3 Qualified overtime (box 12 code TT)
FS-2026-13 Q12, Q13, Q15; 29 CFR 778.109–778.110, 778.209; 2026 W-2/W-3 instructions, code TT. How Halfmark computes it
Add files first.
4 Tips: box 12 code TP and box 14b
Code TP = total cash tips reported to the employer; box 14b = up to two Treasury Tipped Occupation Codes, one must be 000 if any tips were from a nonqualifying occupation (2026 W-2/W-3 instructions; T.D. 10044). Guide and code list
Add files first.
5 Export
Files are created in your browser. Check every value before you enter it in payroll or on a form.
Method memo (PDF)
Settings, rules with IRS and CFR sources, per-employee results, the workweek detail with intermediate values, flags and limitations.
Spreadsheets (CSV)
Values in the adjustments file are not entered anywhere automatically. Amounts marked “blocked” need the flagged issue resolved first.
Project file
Save the imported data, mappings and settings to a file on your computer to continue later. It contains payroll data: store it like other payroll records.