Federal payroll reporting just changed — and InnovateHR is here to make it easy.
Recent federal legislation passed in 2024 introduced a new requirement affecting how certain overtime earnings must be reported on employee W-2 forms beginning in the
2025 tax year. While the rule itself is technical, the goal is simple:
greater transparency for employees and more accurate tax reporting.
For employers, however, this change creates new tracking, calculation, and reporting responsibilities — and more employee questions at year-end.
That’s where
InnovateHR comes in.
What’s Changing for Employers?
Under the new law, employers must
separately report true FLSA overtime premium pay on employee W-2s. This reporting helps ensure overtime earnings are properly identified and may allow employees to receive any applicable tax benefits tied specifically to overtime pay.
This is a
reporting change only — not a payroll change — but it still requires:
- Accurate identification of eligible overtime premiums
- Ongoing tracking throughout the year
- Proper W-2 configuration and year-end validation
What This Means for Employees
From an employee perspective:
- Pay rates are not changing
- Overtime calculations remain the same
- Paychecks stay exactly the same
The only difference is how certain overtime premiums appear on the W-2 — which often leads to questions during tax season.
InnovateHR helps employers
get ahead of those questions with clear communication and compliant reporting.
Why Employers Partner with InnovateHR
✅ We Handle the Complexity
InnovateHR manages the full process — from identifying eligible overtime to ensuring compliant W-2 reporting — so employers don’t have to interpret evolving federal guidance on their own.
✅ We Reduce Employee Confusion
We provide
employee-friendly FAQs and communication tools that explain the change in plain language, helping your team understand what’s changing (and what isn’t).
✅ We Protect Compliance & Timelines
Late decisions or incorrect setup can delay W-2s or require costly corrections. Our proactive approach helps avoid:
- Manual rework
- Off-cycle corrections
- Compliance risk or penalties
✅ We’re a Trusted Point of Contact for Employees
Instead of HR teams fielding tax-season questions, employees can contact
InnovateHR directly for W-2 and payroll-related clarification — saving internal time and reducing stress.
✅ Backed by Our 2-Hour Promise
Questions come up. Regulations change. We respond quickly. That’s our commitment.
Our Approach: Simple, Proactive, Compliant
InnovateHR partners with employers to:
- Implement required reporting correctly the first time
- Communicate changes clearly to employees
- Minimize administrative burden during year-end processing
- Deliver a better employee experience — even when regulations change
Need Help Navigating 2025 W-2 Changes?
If you’re unsure how this new overtime reporting requirement applies to your organization — or want help simplifying communication for your employees —
InnovateHR is here to help.
Contact InnovateHR to learn how we can support your payroll, compliance, and employee experience needs.
