New W-2 reporting requirement: Overtime Premiums

To comply with new reporting requirements under HR1, commonly referred to as the “One Big Beautiful Bill Act,” Washington State University (WSU) will report the qualified overtime premium paid to employees during the 2025 tax year in Box 14 of Form W-2. This amount will appear with the label “2025 OVT.”

What WSU Employees Need to Know

  • The amount reported reflects only the premium portion of overtime compensation (generally the additional 0.5× rate paid above the employee’s regular hourly rate for eligible overtime hours).
  • The Box 14 entry is for informational purposes only and does not change the taxable wages reported in Boxes 1, 3, or 5.
  • Employees are not required to take any action on their tax returns based solely on this Box 14 reporting. However, the information may be useful for personal records or for agencies/programs that request earnings details.
  • If you have specific questions about taxability or how this may affect your individual tax situation, please consult a qualified tax professional.

Questions and Support

Contact WSU Payroll Services: