The 2025 Form W-2 did not change to accommodate the OBBBA overtime deduction or the tip deduction. Taxpayers and tax preparers have to come up with these numbers themselves – the final paystub is your best source.

In 2026, employers will be required to report the needed OBBBA information to the employee and to the IRS. For those who offer payroll services, you’ll need more detail from the client now to avoid going back 12 months to calculate overtime or tip amounts. Even if you are not providing payroll services, all of your business clients with employees need to know what has changed for 2026 reporting.

Beginning with the 2026 Form W-2, employers must report tips, overtime and Trump account information in Box 12 using the following codes:

• TA—Employer contributions under a §128 Trump account contribution program paid to a Trump account of an employee or a dependent of an employee. Find more on the employer contributions to a Trump account here.
• TP—Total amount of cash tips reported to the employer. “Cash tips” includes tips received in cash, charged, or under a tip-sharing arrangement. Use this amount when determining the qualified tip deduction in Part II of Schedule 1-A (Form 1040).
  • Find the list of eligible occupations on the dedicated One, Big, Beautiful Bill provisions page on the IRS website. The full list of 68 occupations, referred to as Treasury Tipped Occupation Codes (TTOC), is also available in this official U.S. Department of the Treasury document.
• TT—Total amount of qualified overtime compensation. Use this amount when determining the qualified overtime compensation deduction in Part III of Schedule 1-A (Form 1040).

Box 14b. Employers use this box to report up to two Treasury Tipped Occupation Code(s) for your tipped occupation(s). Use this code(s) and the amount of tips reported in box 12 (code TP) when determining the qualified tip deduction in Part II of Schedule 1-A (Form 1040). If the occupation code 000 is used, your cash tips received in that occupation are not qualified tips; do not use the amount reported in box 12 (code TP) for the deduction for qualified tips.

Reminder: If the former employee requests the W-2 earlier than the standard deadline of January 31 of the following year, the employer must provide it within 30 days of the request or the final wage payment date, whichever is later. Thus, your business client may need to know the new 2026 Form W-2 reporting requirements sooner rather than later.