Qualified Overtime from Pay Stubs: ÷ 3, ÷ 4 and the Other IRS Methods

For 2025, employers didn't have to report qualified overtime, so Notice 2025-69 gives you ways to work it out. If the stub shows the premium separately, use it. If it shows total overtime pay at 1.5×, divide by 3 ($15,000 → $5,000). Double time: divide by 4 ($20,000 → $5,000), because only the half-time required by the FLSA counts. From hours: hours over 40 in each workweek × ½ × the regular rate.

Every workweek stands alone

The FLSA looks at each fixed 7-day workweek. You can't average two weeks, and hours at two different employers aren't added together. Overtime counts in the year it's paid, so a late-December week paid in January belongs to the next year.

Last reviewed 2026-10-29. General information, not tax advice. Your W-2 and a tax professional come first.