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Subject: Keep Your Final 2025 Pay Stub for Reporting Your Overtime Premium on Your Tax Return
Hi Team,
For your 2025 tax return, you may need to know your overtime wage premiums paid to you during the year.
You may use your last 2025 pay stub to determine year-to-date overtime, or request that we provide a statement isolating the overtime premium. The IRS Notice 2025-69 confirms that employers are not required to provide this in 2025, and no penalties apply if we don’t—but providing it can help you accurately claim your deduction.
How to Estimate Your Overtime Premium
Your overtime pay usually includes:
- Regular rate (your normal hourly pay)
- Overtime premium (the extra half-time portion)
If your overtime is paid at “time-and-a-half”:
- Overtime premium = Total overtime pay ÷ 3
Example:
- Regular hourly rate: $20
- Overtime hourly rate: $20 x 1.5 = $30
- Overtime hours: 100
- Total overtime pay: $3,000 (100 hrs × $30/hr)
- Overtime premium: $1,000 ($3,000 ÷ 3)
Sample Overtime Premium Statement Template
[Company Name]
Overtime Premium Summary for Tax Year 2025
Employee Name: ______________________
Employee ID: _________________________
Total Regular Hours: __________________
Total Overtime Hours: _________________
Total Overtime Premium (Half-Time Portion): $_____________
Prepared by: __________________________
Date: ________________________________