On a $9,000.00 time-and-a-half check, the optional flat method withholds $1,980.00. The qualified premium is $3,000.00. At $80,000 of MAGI, single, the deduction saves about $660.00 of federal income tax. Those are different numbers.
Flat federal withholding
$1,980.00
Flat withholding is $1,980.00. That is not the tax on the return.
How the total splits
The 22% rate is optional, and only when the overtime is paid as supplemental wages under $1 million. An employer can treat overtime as regular wages. Do not divide double time by 3.
| Flat 22% withholding | $1,980.00 |
|---|---|
| Employee Social Security and Medicare | $688.50 |
| Qualified premium (payment ÷ 3) | $3,000.00 |
| Deduction after cap and phase-out | $3,000.00 |
| Federal income tax saved | $660.00 |
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Optional flat withholding = overtime payment × 22%. Qualified premium = time-and-a-half payment ÷ 3.
Publication 15 for 2026 says supplemental wages can be withheld at a flat 22% when they are paid separately and the employer already withholds income tax on regular wages. No other flat percentage is allowed under that option. Once supplemental wages for the year go past $1 million, the excess is withheld at 37% without regard to Form W-4. Social Security and Medicare still apply either way. This page ignores the Social Security wage base.
Overtime does not have to be supplemental wages. The same publication says employers may treat overtime pay as regular wages. In that case the paycheck uses the Form W-4 and the usual withholding tables, not 22%. This calculator does not run those tables. The figure above is the flat method only, and only for a time-and-a-half payment. Do not divide a double-time check by 3.
The deduction is a different step. It removes the FLSA premium from taxable income on the return, up to the cap, for 2025 through 2028. It does not change the 22% withholding rate. An employer reduces withholding for the deduction only after a new Form W-4. The W-4 page on this site fills worksheet line 1b.
| Flat 22% withholding | $1,980.00 |
|---|---|
| Premium | $3,000.00 |
| Tax saved on the return | $660.00 |
Not on the return. It is ordinary income. A separate overtime payment can be withheld at a flat 22%, which is often higher than the worker's bracket, so the paycheck looks overtaxed. The extra withholding comes back as a lower bill or a refund, and the qualified half may also be deductible.
No. Publication 15 lets the employer treat overtime as regular wages, or add it to the regular paycheck and use the normal withholding method. The flat 22% is an option for supplemental wages when income tax is already being withheld on regular wages, and only up to $1 million of supplemental wages.
Not by itself. The deduction is claimed on the return. Withholding drops during the year only if you give the employer a Form W-4 that accounts for the deduction. FICA is unchanged.