---
title: "Qualified Overtime (QOT) Accumulator for OBBA and IRS Reporting"
slug: "qualified-overtime-qot-accumulator-for-obba-and-irs-reporting"
updated: 2026-10-08T11:29:03Z
published: 2026-10-08T11:29:03Z
canonical: "zenoplesupport.aqore.com/qualified-overtime-qot-accumulator-for-obba-and-irs-reporting"
---

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# Qualified Overtime (QOT) Accumulator for OBBA and IRS Reporting

Qualified Overtime (QOT) refers to the FLSA premium portion of overtime pay, the extra half-time rate for hours worked beyond 40 in a workweek, that employers are required to track and report under OBBA and IRS regulations. This enhancement introduces a dedicated accumulator for these premium amounts, ensuring compliance without altering the way overtime is currently paid to employees.

QOT is **calculated during W-2 processing** and displayed on **W-2 in Box 12b with Code TT** starting with tax year 2026. For transparency during the year, Year-to-Date QOT values are also visible on employee statements and portals as “Qualified Overtime (FLSA premium portion).”

In summary, this feature allows employers to meet federal reporting standards, prepare accurate W-2s, and provide full compliance visibility without impacting regular payroll calculations or paychecks.

### Where and How It Is Displayed

- QOT amounts are **calculated and finalized during W-2 processing**; these values are **not shown as separate earnings during regular payroll**.
- In year-end forms, the QOT value appears in **W-2 Box 12b labeled with Code TT**, in accordance with IRS requirements starting in tax year 2026.

### Calculation Details

- **Step 1 –** **Identify Qualified Hours:** Weekly hours for non-exempt employees beyond 40, excluding state-only daily overtime unless those hours also count toward weekly overtime.
- **Step 2 – Determine Regular Rate:** Uses the existing regular-rate which will be applied in overtime calculations. The overtime rate calculation for this is always going to be 1.5X RT.
- **Step 3 – Calculate Premium Per Hour:**
  - QOT premium per hour = (Overtime rate − Regular rate).
  - For standard 1.5x OT, this equals 0.5 × regular rate.
- **Step 4 – Total QOT Dollars:**
  - QOT Amount = Premium per hour × FLSA OT hours.
  - For clarity: only the FLSA-required premium is included; any incremental above time-and-a-half (such as double time) is excluded.
- The derived QOT dollars are posted to a non-pay, non-tax accumulator for audit and reporting purposes only, no effect on gross wages, taxability, or GL distribution.
- Accumulator values are maintained as YTD, with optional Pay-to-Date and Quarter-to-Date views. They automatically update on payroll recalculations and retroactive adjustments.