New Overtime Addon Report – PayDtl10
Good Afternoon,
Under the One, Big, Beautiful Bill, workers may be eligible for new deductions for tax years 2025 through 2028 if they received qualified overtime compensation. For tax year 2025, it is optional for the employer to provide this information to employees. Escape version 25.04 has introduced a new PayDtl10 report, which allows employers to run and export overtime data by Pay Date range, for the purpose of calculating total qualified overtime compensation in 2025.
For more information, see PayDtl10 – Overtime Addon Report in Escape – Online Resources – Documentation. Please also reference the IRS guidance provided below. Districts are encouraged to consult legal counsel for further guidance.
IRS Guidance:
* IRS provide guidance for individuals who received tips or overtime during tax year 2025 www.irs.gov/newsroom/treasury-irs-provide-guidance-for-individuals-who-received-tips-or-overtime-during-tax-year-2025
* IRS provide penalty relief for tax year 2025 for information reporting on tips and overtime under the One, Big, Beautiful Bill www.irs.gov/newsroom/treasury-irs-provide-penalty-relief-for-tax-year-2025-for-information-reporting-on-tips-and-overtime-under-the-one-big-beautiful-bill
Regards, School Business Advisory Services Team Santa Barbara County Education Office www.sbceo.org/sbas<www.sbceo.org/sbas>
Under the One, Big, Beautiful Bill, workers may be eligible for new deductions for tax years 2025 through 2028 if they received qualified overtime compensation. For tax year 2025, it is optional for the employer to provide this information to employees. Escape version 25.04 has introduced a new PayDtl10 report, which allows employers to run and export overtime data by Pay Date range, for the purpose of calculating total qualified overtime compensation in 2025.
For more information, see PayDtl10 – Overtime Addon Report in Escape – Online Resources – Documentation. Please also reference the IRS guidance provided below. Districts are encouraged to consult legal counsel for further guidance.
IRS Guidance:
* IRS provide guidance for individuals who received tips or overtime during tax year 2025 www.irs.gov/newsroom/treasury-irs-provide-guidance-for-individuals-who-received-tips-or-overtime-during-tax-year-2025
* IRS provide penalty relief for tax year 2025 for information reporting on tips and overtime under the One, Big, Beautiful Bill www.irs.gov/newsroom/treasury-irs-provide-penalty-relief-for-tax-year-2025-for-information-reporting-on-tips-and-overtime-under-the-one-big-beautiful-bill
Regards, School Business Advisory Services Team Santa Barbara County Education Office www.sbceo.org/sbas<www.sbceo.org/sbas>
IRS-Notice-25-69.pdf