Youmans & Gardner LLC, CPA

Draft versions of Forms W-2, Wage and Tax Statements, for 2026 include new reporting requirements. Employers will be required to report total qualified overtime compensation and qualified tips. In addition, the Treasury Occupation Code for an employee's tipped occupation must be entered. 

• If we maintain your employee earnings records, you must track your employee's overtime by writing the regular pay, overtime pay, and tip pay separately on the check or stub.
• If you use computer software to calculate your payroll, you must properly use the regular hours and overtime hours input fields and tip pay field to properly calculate and report overtime and tip pay.
• If we prepare your payroll, we will automatically track the required tips and overtime compensation and properly report the amounts on your payroll tax forms.