The Internal Revenue Service (IRS) provided transition relief to employers for the 2025 tax year from overtime reporting requirements. As such, townships are not required to report overtime for the 2025 tax year on official tax statements such as W-2s. Townships may voluntarily choose to provide employees with estimates of qualified overtime earned for the 2025 tax year and are encouraged to do so if possible. Reporting will be mandatory for the 2026 tax year. Qualified overtime is the “half” portion of the “time-and-a half” paid to employees who work more than 40 hours a week and who are not exempt from the Fair Labor Standards Act (FLSA) due to job duties and salary tests. For more information on the 2025 overtime tax reporting relief, click here for IRS rules.