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Guides: code TT overtime and code TP tips for 2026

Short guides for bookkeepers, payroll admins and CPAs, each with the IRS and Department of Labor sources behind it. General information, not tax or legal advice.

• W-2 box 12 code TT: how qualified overtime is calculated for 2026: The IRS formula for code TT (hours over 40 × ½ × FLSA regular rate), the fixed workweek, what counts in the regular rate, and worked examples with sources.
• The regular rate for code TT: bonuses, shift pay and the tip credit: What goes into the FLSA regular rate used for W-2 code TT: non-discretionary bonuses (29 CFR 778.209), shift differentials, the tip credit (29 CFR 531.60) and the statutory exclusions.
• California daily overtime and double time: what goes in code TT: State daily overtime and double time are not qualified overtime. Worked California examples showing the FLSA weekly premium that belongs in W-2 box 12 code TT.
• Code TP and box 14b: reporting tips and Treasury Tipped Occupation Codes: What goes in W-2 box 12 code TP (cash tips reported), how to pick box 14b codes (up to two, 000 for nonqualifying occupations), and the full IRS TTOC list.
• Switched payroll providers mid-year? Getting code TT and TP right: When an employer changes payroll providers during 2026, the new provider usually needs prior-provider qualified overtime and tips to report a full-year code TT and TP.
• Correcting code TT or TP: Form W-2c and the $100 de minimis safe harbor: When a 2026 Form W-2 has the wrong code TT or TP: W-2c rules from FS-2026-13, the de minimis safe harbor for amounts within $100, the payee election, and 2026 penalty amounts.
• How Halfmark calculates: method, choices and limits: The exact steps Halfmark uses to recompute W-2 code TT per workweek and check code TP and box 14b, the choices it makes where the data is incomplete, and what it does not do.