Georgia Overtime Reporting Mandate for Field Service Employers

In the first quarter of 2026, Georgia field service employers will be required to report their technicians' overtime pay in a new way, as the first W-2 forms under the federal "no tax on overtime" deduction come due. Heating and air, plumbing, electrical, and other field service companies in Georgia will be required to show their technicians' overtime compensation in Box 12 of Form W-2 using the new code TT, according to IRS Fact Sheet FS-2026-13, updated in August. The IRS gave employers relief from the requirement for 2025 and said no relief is available for later years. Because Jan. 31, 2027 falls on a Sunday, employers have until Monday, Feb. 1, to furnish the forms.

For tax year 2026, employers must report each employee's qualified overtime compensation in Box 12 of Form W-2 using the new code TT, according to IRS Fact Sheet FS-2026-13. The amount reported is narrower than many workers expect. Only overtime required by the Fair Labor Standards Act counts, and only the premium portion, generally the extra half of "time and a half" for hours over 40 in a workweek. Overtime a company pays voluntarily, such as a premium for Saturday work in a week under 40 hours, does not qualify. Employees can deduct up to $12,500 a year, or $25,000 on a joint return, with the deduction phasing out above $150,000 of modified adjusted gross income, or $300,000 for joint filers. The deduction runs through tax year 2028.

However, Georgia did not follow the federal change. The state's 2026 conformity law, House Bill 1199, signed March 20, leaves overtime and tips taxable for Georgia income tax purposes. Field service businesses are among those most affected. Technicians in trades such as HVAC and plumbing often work long weeks during summer and winter peaks, and many are paid commissions or performance bonuses, which the FLSA generally counts when calculating the regular rate used to figure overtime.

ClearLedgers, which provides full-service payroll for small businesses, recommends that field service owners confirm three things with their payroll provider before year-end: that overtime is tracked by workweek for each employee, that commissions and bonuses are included in the regular rate, and that the provider will populate Box 12 code TT on 2026 W-2s. Employers with questions about their own situation should also consult their CPA.

In the state of Georgia, field service employers are required to report their technicians' overtime pay in a new way for the first time in 2026. The requirement is mandated by the federal "no tax on overtime" deduction, which was updated in August by IRS Fact Sheet FS-2026-13. Employers can request relief from the requirement for 2025, but no relief is available for later years. Because Jan. 31, 2027 falls on a Sunday, employers have until Monday, Feb. 1, to furnish the forms. The amount reported is limited to qualified overtime compensation, which is only the premium portion of overtime required by the Fair Labor Standards Act, and only for hours over 40 in a workweek. Overtime a company pays voluntarily, such as a premium for Saturday work in a week under 40 hours, does not qualify. Employees can deduct up to $12,500 a year, or $25,000 on a joint return, with the deduction phasing out above $150,000 of modified adjusted gross income, or $300,000 for joint filers. The deduction runs through tax year 2028. However, Georgia did not follow the federal change. The state's 2026 conformity law, House Bill 1199, signed March 20, leaves overtime and tips taxable for Georgia income tax purposes. Field service businesses are among those most affected. Technicians in trades such as HVAC and plumbing often work long weeks during summer and winter peaks, and many are paid commissions or performance bonuses, which the FLSA generally counts when calculating the regular rate used to figure overtime. ClearLedgers, a bookkeeping and payroll firm based in Alpharetta, Georgia, has issued recommendations for field service owners to confirm three things with their payroll provider before year-end: that overtime is tracked by workweek for each employee, that commissions and bonuses are included in the regular rate, and that the provider will populate Box 12 code TT on 2026 W-2s. Employers with questions about their own situation should also consult their CPA.