BBB No Tax on overtime for salary employees that do get extra pay.

[davidH_123]

We are classified as exempt employees, only paid 40 hours per week. However, during certain periods of "rush" they let us work 10-20 extra hours. Those extra hours are paid as regular hours, with no 1.5x multiplier.

Would those extra hours still qualify for the over time tax deduction under the BBB?

[rjs]

No, the extra hours are not overtime that qualify for the deduction under the new tax law. The deduction for overtime applies only to the amount over your regular pay rate. If your regular pay is $30/hour and you get $45/hour for overtime, you would get a deduction for the extra $15/hour. But you still pay tax on all the pay at the regular $30/hour rate. The number of hours that you work doesn't really matter. It's the time and a half that gives you a deduction.

An exempt employee is usually not going to qualify for the deduction for overtime.