How to Advise Clients on Tip and Overtime Tracking in QuickBooks

This post is for internal use only. Please do not share the link to this blog post with clients. You may share the Intuit QuickBooks resource links provided below. External communication with these resources has already been published for client use.

As payroll requirements evolve, it’s important that we help clients stay compliant and organized. For 2025, tips and overtime amounts aren’t required to appear on W‑2s, but employees will need access to this information for tax purposes. Employees should be able to utilize the pay items on their last pay stub of the year to report total overtime and tips. 

Starting in 2026, employers, especially those running payroll in-house, must track these amounts using new payroll codes to report accurately on their W‑2. Accurate tracking ensures clients can meet IRS requirements and avoid year-end reporting issues. 

To support our clients, we’re sharing Intuit’s resources that explain how to set up and manage tip and overtime tracking in QuickBooks Desktop and Online. These steps are critical as we transition from 2025 stub-level tracking to 2026 W‑2 reporting. 

Learn how to track tips in QuickBooks by clicking here.

Learn how to track qualified overtime in QuickBooks by clicking here.

For clients using other payroll providers, please reach out to the payroll vendor for guidance on setting up tip and overtime tracking in their systems. If you have questions or need help walking clients through these changes, reach out to Samantha Laramore.