Overtime pay for employees
1.5x wages
Can You Write Off Overtime Pay for Employees?
Short answer: Yes: overtime is deductible wages for the business.
Starting with 2025, employees may deduct part of their overtime premium on their own returns, so report it accurately on W-2s.
Records to keep: Keep receipts or invoices, proof of payment, and a short note of the business purpose.
BW-B22-00664
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Overtime pay for employees
1.5x wages
General Business
Payroll & Labor
Business Write-Off Questions
Yes: overtime is deductible wages for the business.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Yes: overtime is deductible wages for the business. Starting with 2025, employees may deduct part of their overtime premium on their own returns, so report it accurately on W-2s.
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- Business Write-Off Questions
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