Does Square Payroll report W-2 code TT?
Short answer: Square has not published how it handles code TT for 2026. Its payroll terms say bonuses and commissions are not automatically included in overtime, so check employees with bonuses or several rates yourself.
| Calculates code TT itself | Not documented |
|---|---|
| What it uses | Overtime is paid from the rules you set (Staff > Settings > Overtime: daily, weekly, double time, 7th day) at 1.5x or 2x. Employees with more than one wage get a blended rate on timecards. No Square page found describes a qualified overtime field for 2026. |
| Check the amount | Square has published no 2026 code TT check. Rebuild the amount per workweek from a timecard export before the W-2 goes out. |
What to watch
- Square's payroll terms: commissions and bonuses are not automatically included in overtime calculations and may need adjusting by hand.
- Daily and 7th-day overtime rules in Square are not FLSA overtime unless the week is over 40 hours.
- Switching mid-year: Square asks for prior payroll history including qualified overtime from your old provider.
- Square's December 2025 advice to divide year-to-date overtime by three was for 2025 only.
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
- Square: Set your work period and overtime rules
- Square: Set up Square Payroll
- Square Payroll Terms of Service
From Square's own help pages, checked 27 October 2026. Payroll products change often: the vendor's page wins. Independent page, not affiliated with Square. Not tax or legal advice.
Did this fix it?