The Fair Labor Standards Act (FLSA) sets nationwide rules for minimum wage, overtime pay and recordkeeping for most public and private workers. Employees covered by the FLSA may qualify for a new IRS-approved tax credit. Among UFT-represented employees, this tax credit is most likely to apply to paraprofessionals and H-bank members who work overtime. Per session work does not qualify as overtime.
Employees who receive time-and-a-half for overtime pay will receive a credit equal to one-third of their eligible FLSA overtime pay. Employees who receive double-time overtime pay will receive a credit equal to one-quarter of their eligible FLSA overtime pay. Employees who receive double-time overtime will receive a credit equal to one-quarter of their eligible FLSA overtime pay. For the current tax year, employers should give eligible employees the information needed to claim this credit on their tax return. The information should appear on employees' W-2 forms.
For more information, check out a user guide to looking up your overtime on the DOE Payroll Portal and some frequently asked questions. Please note that the UFT cannot provide tax advice or answer questions from members about their taxes. Members should consult with their tax professional for assistance claiming this credit.