Tie-out tool / By hand vs payroll software
Code TT qualified overtime: by hand, payroll software or Tickfoot
If your payroll software already tracks qualified overtime and your pay rules are plain, use its figure. By hand works for a few employees on one rate. Tickfoot rebuilds the figure from a timesheet CSV when neither is enough or you want a second check.
Every employer that paid overtime in 2026 has to put the qualified part of it in box 12 with code TT on the employee's W-2. There are three ways to get the number. Dates and prices below come from the pages named in the table, read on 13 November 2026; they change, so open the page before you decide.
The three routes side by side
| By hand (spreadsheet) | Payroll software that tracks it | Tickfoot | |
|---|---|---|---|
| What you start from | Hours worked per workweek and the hourly rate | Your payroll data; the product has to be set up to track the item | A timesheet CSV from your time clock or payroll export, and optionally the register overtime totals |
| Cost | Your time. A free worksheet template is on this site | A payroll subscription (table below); the tracking is part of running payroll, not a separate purchase | Free for one employee on screen. $39 one-time, per practice, up to 10 EINs, or $129 for unlimited EINs for the season |
| Per-employee working shown | Whatever you build | Depends on the product; the pages we read do not show one | Yes: every workweek, hours over 40, rate and amount, with the reason for each difference from the register |
| Where your files go | Stay with you | Held in the payroll system | Read in your browser; never uploaded |
| Handles state daily overtime and double time | Yes, if you apply the rule each week | Depends on how overtime is set up in the product | Counts only the part the federal rule requires; holiday and leave hours are kept out of the 40 |
| Files or pays anything | No | Payroll products run payroll and can file forms | No. Tickfoot is not payroll software and files nothing |
The formula is the same on every route: hours worked over 40 in the workweek x one-half x the regular rate, added up for the workweeks paid in 2026. (IRS FS-2026-13, Q12) The IRS lists the box 12 code in its 2026 W-2 instructions.
What the payroll vendors' own pages say
We read each vendor's public pages on 13 November 2026. Prices are as printed on the page, and we do not say which of two printed figures is the regular price unless the page does. The last column is only what the pages we read say about qualified overtime or box 12 code TT.
| Vendor | Price printed on its page | What the page we read says about qualified overtime or code TT |
|---|---|---|
| QuickBooks Payroll (Intuit) help article | Workforce Payroll + Simple Start: $88 + $6.50/employee and $44/mo + $6.50/employee/mo. Workforce Payroll + Essentials: $125 + $6.50/employee and $62.50/mo + $6.50/employee/mo. Workforce Premium + Plus: $203 + $10/employee and $101.50/mo + $10/employee/mo. Each card says 50% off for 3 months* | The pricing page we read has no text about overtime. The help article (updated 8/25/2026) describes a Qualified Overtime Tracking item. In QuickBooks Workforce it is added as a pay type, and the article says “You may still edit the amount if you need to.” Some set-ups must be entered by hand: state or company overtime that differs from federal, other pay types, and overtime at different rates. For Desktop with the setup answer no it says “QuickBooks Desktop Payroll is unable to automatically enter the qualified amount.” The article does not mention box 12 code TT; it says “The IRS guidance lists Box 14 as a voluntary option for reporting these provisions of the bill for 2025.” It does not mention a report for the amount |
| OnPay article | $49 base + $6/worker for Payroll Essentials, with W-2s, 1099s, and year-end filings included | The pricing page lists Overtime tracking as a feature and does not describe qualified overtime or code TT. OnPay's article on the overtime deduction says businesses should consider “payroll with built-in tracking for OBBB-qualified overtime” and links to its payroll product. The article we read does not say what OnPay's payroll puts in box 12 code TT |
| Patriot Software article | Basic Payroll: Regular price: $17/month base plus $4 per employee or contractor/month. Full Service Payroll: Regular price: $37/month base plus $5 per employee or contractor/month. A 50% promotion for the first 3 months is also printed | The pricing page we read does not mention qualified overtime or code TT; it lists electronic or printable W-2s. Patriot's article explains the IRS code TT requirement and does not say whether Patriot's payroll software fills in code TT |
| Paychex W-2 article | No price printed; the page offers Request Pricing | The W-2 article (last updated 10/29/2026) says “Employers may need to report cash tips under box 12 code TP, qualified overtime compensation under code TT” and “Paychex can prepare and file W-2s for employers.” It does not say how Paychex software or reports fill box 12 code TT. The payroll services page does not mention qualified overtime or code TT |
Not listed: Gusto, whose help and pricing pages did not load for our fetch on 13 November 2026, and every vendor we did not check. Being absent from this table says nothing about a product. No link on this page is an affiliate link, and this site is not affiliated with any vendor named. QuickBooks is a trademark of Intuit Inc.
When payroll software is the better choice
- It already tracks the item and your pay rules are plain. One overtime policy, one rate per employee, overtime after 40 in the workweek. The software that pays the overtime is the best place for the total, and the figure then comes from the same data as the register. Ask your provider where the year-to-date figure shows and how it is built.
- You were going to run payroll in software anyway. The monthly price is for payroll; qualified overtime tracking is one small part of it. Do not change payroll provider for this one box.
- You need something filed. Tickfoot files nothing and does not prepare W-2s.
When doing it by hand is enough
A few employees, one hourly rate each, no leave or holiday hours in overtime weeks: a spreadsheet with the free template is quick and costs nothing. The one-week calculator is free as well.
Where Tickfoot fits
- Your time clock and your payroll are different systems, and you want the figure built from the hours.
- You want a second check on the figure your payroll software gives, with the reason for every difference from the register line by line. See why Code TT does not match the register.
- You are a bookkeeper with several employers and want the same working for each. The $129 pass covers unlimited EINs for the season.
Limits: Tickfoot handles hourly staff on one rate per workweek and stops, with an explanation, on pay it cannot work out (bonuses, tips, salary, differentials, two rates). The weighted average for two rates is shown on its own page. It is a calculation aid and not tax advice. Open the tie-out tool to run a file; it works in your browser and nothing is uploaded.
Do the whole year from a file
Drop a timesheet CSV, paste the register overtime totals, and get a worksheet per employee with the reason for every difference.
Open the tie-out toolRuns in your browser. Payroll data is never uploaded.
Questions
Does my payroll software already report code TT?
Check your own provider's help page for 2026 W-2s. Of the vendor pages we read on 13 November 2026, only the QuickBooks help article describes a qualified overtime tracking item, and it says some set-ups must be entered by hand.
Is Tickfoot payroll software?
No. It reads a timesheet CSV in your browser, rebuilds code TT per employee and workweek, and shows the working. It does not run payroll, file forms or keep your files.
Can I just do it by hand?
Yes for a small team on one rate each. For every workweek take the hours worked over 40, multiply by half the hourly rate, and add up the workweeks paid in 2026. Holiday and leave hours are not hours worked.
Sources
- IRS, General Instructions for Forms W-2 and W-3 (2026)
- IRS Fact Sheet FS-2026-13, qualified overtime questions and answers (August 2026)
- Intuit QuickBooks help: Impact of the No Tax on Overtime provision to QuickBooks Payroll (updated 25 August 2026)
- Intuit QuickBooks Payroll, plans and pricing page
- OnPay, pricing page
- OnPay, No tax on overtime explained: What employers and employees need to know
- Patriot Software, payroll pricing page
- Patriot Software, No Tax on Overtime: What to Know
- Paychex, Form W-2: Employer Guide to Online Filing (last updated 10/29/2026)
- Paychex, payroll services page
Fetched 2026-11-13. Regulation text was checked against the federal annual edition; links open the current online version.
Updated 2026-11-13. Tickfoot is an information tool, not tax, legal or professional advice.