Worked example
An employee works 50 hours at $20 in the week ending Saturday, December 26, 2026. Payday is Friday, January 1, 2027.
| 2026 W-2 | 2027 W-2 | |
|---|---|---|
| Qualified overtime for that week (½ × $20 × 10 hours) | $0.00 | $100.00 |
It's the same rule as regular wages. The employee's 2026 deduction is based on the 2026 W-2, so getting the year right matters for both of you.
Bonuses paid later work the same way
If a bonus for 2026 work is paid in 2027, the extra overtime it creates also goes on the 2027 W-2. See how to calculate code TT with a bonus.
How the calculators handle it
The batch calculator and the spreadsheet both use each week's pay date to decide the year. If a pay date is missing, the week ending date is used instead. Weeks ending after December 20 with no pay date are flagged, so a January payday isn't missed.
If a W-2 already went out with the wrong amount, the IRS says to issue a corrected Form W-2c (IRS FS-2026-13).
The free calculator shows every step. For a whole team's W-2 totals, the batch version reads your timesheet export.
Questions
Which W-2 gets overtime for a week paid in January?
Generally the W-2 for the year it was paid. A week worked in December and paid in January is reported on the next year's W-2.
What if I already issued the W-2 with the wrong year?
Issue a corrected Form W-2c to the employee and the Social Security Administration as soon as possible.