Three California weeks compared
| Week | California overtime paid | Code TT |
|---|---|---|
| Four 10-hour days (40 hours) at $22 | 8 hours of daily overtime | $0.00. Nothing is over 40 for the week |
| Five 9-hour days (45 hours) at $20 | 5 hours of daily overtime | $50.00. 5 hours over 40, × ½ × $20 |
| 52 hours including one 13-hour day, at $20 | Daily overtime plus 1 hour of double time | $120.00. 12 hours over 40, × ½ × $20 |
Why the first week is $0
California requires time-and-a-half after 8 hours in a day, so four 10-hour days earn 8 hours of daily overtime. But the week totals exactly 40 hours, so federal law requires no overtime, and the W-2 code TT amount is zero. The employee still gets the California overtime pay. It just isn't reported as qualified overtime.
Double time
When California requires double time, only the federal half-time portion counts, and only for hours over 40 in the week. The extra pay above time-and-a-half is not qualified overtime, as the IRS's own double-time example shows.
How to enter California weeks
Enter total hours worked in the workweek and the straight-time rate. Don't enter the daily overtime or double-time pay. The calculator only looks at hours over 40, which is exactly the federal rule.
The free calculator shows every step. For a whole team's W-2 totals, the batch version reads your timesheet export.
Questions
Is California daily overtime qualified overtime?
Only to the extent the hours are also over 40 in the federal workweek. Daily overtime in a week of 40 hours or less is required by state law, not the FLSA, so it isn't reported in code TT.
Does double time count for code TT?
Only the federally required half-time premium counts. The extra amount paid above time-and-a-half is not qualified overtime.