Overtime pay—time and a half—usually is compensation for employees who work more than 40 hours in a week, and it is reported on Form W-2. Overtime pay is required for employees under the Fair Labor Standards Act. But independent contractors who are not employees can be paid overtime if they have a contract requiring it. For independent contractors, overtime pay is reported on Form 1099-NEC (box 1d of the 2026 version of the form) and they may be able to claim a personal deduction on their Form 1040. #IdeaoftheDay
Arriving in time for the tax return deadline, here’s a new eBook created for small business owners!
