Non Exempt OT and/or Non Exempt Tips

If you have a client that pays Overtime wages for hours less than 40 per week, these wages cannot be included as exempt in Box 12 on the W2. To track these correctly, set up separate Payroll Items for these payments.

Note:  The Year end update has not been released yet, so Non Exempt OT is NOT available for you to select.  Leave Regular in the Pay Class and change it after the update is released.  We only use the Non Exempt OT Pay Class as we are generating the W2s at run time.

If you have Non Exempt Tips, set up an Other Income item and select Box 7 - Non Exempt Tips in the W2 Tracking drop down.

Note:  The Year end update has not been released yet, so Box 7 - Non Exempt Tips is NOT available for you to select.  Select Box 7 Reported Tips in the W2 Tracking and you can change it after the update is released.  We only use the Box 7-Non Exempt Tips as we are generating the W2s at run time.