To calculate and display employee overtime information on the W2, the following items must be properly set.
Set Default Work Week Start Day
- Go to settings and click on the Accounting Defaults tab
- Set the day your organization starts its work week (this may be overridden at the employee level)
Set the Pay Types
- Go to Payroll and click on the Payroll Types menu item
- Go through each payroll type and set the FLSA type for that item
- If the payroll type counts as regular worked hours, set the FLSA type to Earnings
- If the payroll type counts as overtime, set the FLSA type to Overtime
- If the payroll type is neither regular worked hours nor overtime, leave the FLSA type blank or set it to None
Set the Employee Information
- Go to Payroll and click on the Employees menu item
- Click on the Personnel tab
- Go through each employee and check the OTC Eligible flag for employees who are FLSA eligible
- If the employee has a work week that starts on a different day from the organization, set the employee’s start day in the Work Week start day box
