Does Sage 50 (US) Payroll report W-2 code TT?
Short answer: No. Sage 50 US doesn't calculate qualified overtime, and its only article on it (last changed 20 November 2025) still says Sage is waiting on IRS direction and will give steps before W-2 time. The July and October 2026 tax updates don't mention code TT. Work out the overtime premium yourself and put it in box 12 through a payroll field.
| Calculates code TT itself | No |
|---|---|
| What it uses | Nothing automatic. Make a payroll field for the premium (Maintain > Default Information > Employees, Employee Fields tab; Memo, or Calc with a formula). Assign it in Maintain > Payroll > Payroll Settings > Taxes > Assign Tax Fields > W-2 Fields: pick it under Box 12 Include and choose the code under Use Code. To see the overtime paid, customize the Yearly Earnings Report (Reports & Forms > Payroll) with Pay Type Info instead of Payroll Field Info. |
| Check the amount | Use a Test drive option in the W-2 wizard (Reports & Forms > Forms > Tax Forms > Payroll Tax Forms > Federal) and compare box 12 with your own premium per employee. Sage has no W-2c article; forum users say corrections go through the same Aatrix W-2 wizard. |
What to watch
- Sage's overtime pay type holds the whole time-and-a-half pay. Code TT is only the half-time premium. Dividing overtime pay by 3 gives the premium only when overtime was paid at exactly 1.5 times the regular rate and no bonus or other pay belongs in the regular rate.
- Sage's article mixes two years: it says code TT goes in box 12, but its steps still put overtime in box 14 "Other", which was the 2025 method.
- Sage's box 12 article says to "select the appropriate code" but doesn't say whether TT is in the list yet. Sage says it is working with Aatrix, its tax form provider, on steps; none were published by 28 October 2026.
- Only FLSA overtime counts (hours over 40 in a workweek). State daily overtime, such as California after 8 hours, and overtime paid by policy don't.
- Code TP for tips and the new box 14b aren't documented for Sage 50.
- On Sage's community forum the "Sage 2026 OT Reporting" thread has 10 replies since January and no answer from Sage staff (checked 28 October 2026).
Check the number before the W-2 goes out
Export hours and earnings per workweek and run them through the free code TT calculator. It rebuilds the FLSA premium week by week (several rates, bonuses spread back, fluctuating workweek, weeks split by pay date) and runs in your browser. Big gaps usually come from bonuses, double time or state daily overtime.
Export hours and earnings per workweek and run them through the free code TT calculator. It rebuilds the FLSA premium week by week (several rates, bonuses spread back, fluctuating workweek, weeks split by pay date) and runs in your browser. Big gaps usually come from bonuses, double time or state daily overtime.
Whole payroll, offline? The W-2 Code TT Kit runs every employee in one file with no network access, plus CSV templates, the week-by-week audit trail and a 12-page guide to every rule.
Get the kit ($29, accountants $99)
Get the kit ($29, accountants $99)
Sources
- Sage: How to handle Overtime and Tips exemption reporting
- Sage: How to add a tax field to box 12 on the W-2
- Sage: How to print and file W-2s and W-3s
- Sage: October 2026 tax update for Release 2026
- Sage Community Hub: Sage 2026 OT Reporting
- IRS: General Instructions for Forms W-2 and W-3 (2026)
From Sage's own help pages and user threads on its community forum, checked 28 October 2026. Payroll products change often: the vendor's page wins. Independent page, not affiliated with Sage. Not tax or legal advice.
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