Supersede Delivery of the 2025 Internal Revenue Service (IRS) Form W-2, Wage and Tax Statement

Reference Number: NFC-26-1773235375
Published: March 18, 2026
Effective: Pay Period 01, 2026

Summary

This bulletin supersedes the Delivery of the 2025 Internal Revenue Service (IRS) Form W-2, Wage and Tax Statement bulletin dated January 14, 2026. It adds information on a new deduction for individuals who receive qualified overtime compensation, located under box 14 on the Form W-2. Deductions of overtime pay reported on the W-2 have been renamed from Overtime Reported to OT Wages.

All other information remains the same.

In January 2026, the 2025 IRS Form W-2, Wage and Tax Statement (W-2), will be available via the Employee Personal Page (EPP). Employees who have elected the paperless option in EPP will not receive a copy by mail but will be able to access it electronically and print it via EPP.

Employees who have not elected the paperless option in EPP will receive W-2s mailed to the residence address as recorded in the Payroll/Personnel System (PPS).

Agencies may access and print W-2s via the Reporting Center (RPCT). The 2025 W-2s will be available under the Financial Reports menu. 

Note: A popup is available in EPP to prompt employees to opt out of having a paper copy of their W-2 and Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, mailed.

Affected Systems

Implementation

The data on the W-2 includes salary payments for Pay Period (PP) 25, 2024 (or the PP of implementation into PPS) through PP 24, 2025, inclusive. The W-2 will also include all 2025 manual payments processed through December 30, 2025. Employees who worked during the tax year for more than one organization serviced by the National Finance Center (NFC) will receive a W-2 containing the total wages paid by NFC for all organizations. The W-2 will be issued under the name of the current employing organization.

Agencies are encouraged to: 

• Remind their employees to verify that their residence address is correct and make any changes prior to the processing of the W-2s. If a residence address is not recorded in PPS, the W-2 will be mailed to their Agency.

• Remind employees who have had a residence address or duty station change to verify that their State tax documents have been updated and the correct State taxes are being withheld. Any adjustments should be submitted via the Web-based Special Payroll Processing System prior to November 29, 2025, to be processed prior to the 2025 W-2 issuance. Any adjustments received after this date may result in a 2025 Form W-2c, Corrected Wage and Tax Statement.

Overtime Compensation

Individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay. The amount exceeding regular pay is the half-compensation portion of the time-and-a-half overtime pay that is required by the Fair Labor Standards Act (FLSA) and reported on the W-2, Form 1099, or other specified statement furnished to the individual. Example: If the regular rate of pay is $10 per hour and the overtime rate is $15 per hour, then the qualified overtime compensation to be deducted would be $5 per hour.

The maximum annual deduction for these wages is $12,500 ($25,000 for joint filers).

The deduction will be phased out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).

This deduction is available for both itemizing and non-itemizing taxpayers.

The annual overtime amount is the overtime rate minus the hourly rate multiplied by the hours of overtime worked. The annual overtime amount could be zero for employees whose overtime rate equals their hourly rate. The overtime rate is not the same compensation as night/weekend/holiday-differential pay. The rate total should reflect timesheet corrections made before the W-2 job runs. The overtime pay will not exceed the half-portion of compensation.

More detailed information is available on the IRS website.

Employee Indebtedness

To comply with IRS regulations, employees who have not repaid their outstanding debt (e.g., salary overpayment) incurred during calendar year 2025 will have the outstanding debt included as taxable wages on their W-2. The outstanding debt is subject to Federal and State (if applicable) income tax. Any debt payments received between December 17 and December 31, 2025, may result in a Form W-2c being issued at a later date.

Electronically Delivered Version of the W-2

IRS provides employees the option to file their tax return using a printout of the electronically delivered version of their W-2 for tax year 2025. Employees who are established users of NFC's EPP can print an electronic version of the W-2 for tax year 2025 via NFC's EPP website for submission with their tax return. The 2025 W-2 will be available in EPP in January 2026.

Note: Employees will be able to change how their W-2s are received (electronically or by mail) in EPP between PP 01 through PP 24 of the calendar year. This option will not be available after PP 24 of the calendar year.

Note: Employees who are not current EPP users (or need a new user identification (ID) or password) can locate the sign-up instructions via the EPP procedure manual. 

Maintaining W-2 Data

Although W-2 history data for tax years 1998 and forward is available to the employee in EPP, and to Agencies via RPCT, only two years of W-2 history data is available in the W-2 Online Processing System. The W-2 data for tax year 2023 was moved to history in November 2025, and is no longer available to be viewed online by Agencies. In mid-January, Agencies will be able to view W-2 data for tax years 2024 and 2025.

Inquiries and W-2 Reprints

If an employee does not receive a W-2, it may have been determined that the W-2 requires adjustments. The appropriate adjustments will be completed by January 30, 2026, and the W-2 will be sent to the employee upon completion. Employees should use EPP to check W-2 data.

All current and former employees of Agencies serviced by NFC must request W-2 reprints from their respective Servicing Personnel Office. When Agencies receive requests from current employees for W-2 reprints, they are encouraged to advise employees to utilize EPP. Agencies are also encouraged to utilize the full suite of available reports in the RPCT. Agency representatives without current RPCT access (or without access to the W-2, Wage and Tax Statement Report) should submit a request for access via their Agency security officer.

EPP

EPP has been updated to accommodate changes required by the 2025 W-2 by adding a new deduction named OT Wages. This update is effective for fiscal years 2025 through 2028. 

RPCT

RPCT has been updated to accommodate changes required for the 2025 W-2, by updating the tax year from 2024 to 2025 on the W-2 and W-2C forms. Also, the overtime wages reporting designation in box 14 of the W-2 has been renamed from Overtime Reported to OT Wages.

Resources

A Quick Reference Card (QRC), which is available online as a reference tool at NFC's website, can assist with accessing EPP, user ID availability, and password assistance.

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.