OSPS News ~ Premium Pay Retro Time Calculations

[LOWRY Timothy * DAS]

On behalf of the DAS Workday Oregon Program
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This message is intended for Payroll Partners and shared with Human Resources for information purposes.

 A Federal law went into effect on January 1, 2025, that allows employees to deduct qualified overtime compensation from their federal income tax returns. ​Release item 1479 is an extension of the release done in December for the new Federal Requirements on Fair Labor Standards Act (FLSA) Overtime Reporting.

Premium Pay Time Calculations Added in April 2026:
On April 22, 2026, additional premium pay time calculation codes were added to the ‘FLSA premium’ worktag eligibility. These additional time calculation tags are listed in the table below and were shared in Payroll Standup meetings in April 2026.

Additional Work in May 2026 for Premium Pay Time Calculations:
In May, a retro calculation took place on May 17, 2026, to capture any of the time calculation tags entered during the pay periods December 2025 – April 2026. The following steps took place on May 17, 2026:

  *   May 17, 2026:

     *   Retro Time Calculation was run for Non-Exempt Overtime Eligible employees for each month, December 2025 and January, February, March and April 2026.
     *   Time was mass submitted for each month.
     *   Time was mass approved for each month.
     *   The screen shot below shows the FLSA premium worktag that can be found on the time block within the time entry screen.

  *   May 18, 2026, a report is now available in Workday Drive with a list of employees with time calculations added to their time entry for December 2025 – April 2026.

     *   Drive>Payroll Resources>Reports>R1479 Time Calcs Added for Premium Pays on W2

Payslip Example:
For any employee that has time entered for any of the time calculations listed below they will see an entry of the premium pay amount backed out and added back in for a net zero- dollar impact on payslips.

In the screen shot below, the employee had time worked on a holiday for 8 hours in December 2025 and January 2026.  After the retro time calculation runs, the entries below will display on payslips as a positive 8 hours and wages for those hours and then an entry for negative 8 hours and negative wages for those hours. The result is a net zero-dollar impact on pay and will ensure that this overtime is reported on the employees W-2 for 2026.

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Overtime Premium Time Calculations added in April:
Time Calculation Worktag​
Time Calculation  ​
Time Worked (Regular Hours)​
FLSA Weekly Overtime - WD TT Users​
Daily Overtime (1.5X)​
FLSA Weekly Overtime - WD TT Users​
Overtime (1.5X) - Holiday Worked - Non FLSA​
FLSA Weekly Overtime - WD TT Users​
Reporting Time​
FLSA Weekly Overtime - WD TT Users​
Scheduled Hours over 8 on a holiday​
FLSA Weekly Overtime - WD TT Users​
Time Worked on Holiday (Non-Exempts)​
FLSA Weekly Overtime - WD TT Users​
AST-Additional Straight Time​
FLSA Weekly Overtime - External TT Users​
Call Back Overtime (1.5X)​
FLSA Weekly Overtime - External TT Users​
Overtime (1.5X) - Holiday Worked - Non FLSA​
FLSA Weekly Overtime - External TT Users​
Call Back Overtime (1.5X)​
FLSA Weekly Overtime - OSPOA​
Command Center OT- (2x)​
FLSA Weekly Overtime - OSPOA​
Field Investigation/Crime Scene Rotation and Response Pay​
FLSA Weekly Overtime - OSPOA​
Overtime (2.5X) - Premium Holiday Worked - OSPOA​
FLSA Weekly Overtime - OSPOA​

Resource for the new deduction for qualified overtime compensation:
To find out more information about the tax deduction and what overtime compensation qualifies, please review the Internal Revenue Service (IRS) “Questions and answers about the new deduction for qualified overtime compensation” fact sheet linked below:​

  *   Fact Sheet 2026-01<https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation>​ ​

Thank you for your continued partnership,

DAS Workday Oregon Program



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