Newport News Shipbuilding’s Payroll Office has announced the following deadlines for payroll processing during the 2025 holiday shutdown:

• 4 a.m. Monday, Dec. 22, is the deadline to approve time for the Dec. 26 paycheck.
• 4 a.m. Monday, Dec. 29, is the deadline to approve time for the Jan. 2 paycheck.

The last off-cycle payments for 2025 will be Friday, Dec. 19. The first off-cycle checks for 2026 will be Friday, Jan. 9. There can be no exceptions to this date.

The Payroll Office (Bldg. 802-1, Suite 128) will close for the year at noon, Tuesday, Dec. 23, and resume normal operating hours at 6:30 a.m. Monday, Jan. 5.

As a reminder, salaried shipbuilders should record time daily and can flex during the Dec. 15-28 pay period (nonexempt shipbuilders must resolve flex weekly). All normal timekeeping rules still apply. Lost time such as PTO, AL, 0325 company pass out and 0465 salaried pass out can be entered and approved up to two weeks in advance. Make sure all elections for PTO, AL or pass out have been communicated to the foreman/supervisor and are entered correctly before leaving for shutdown. Call-in, late notifications and changes will not be accepted for Dec. 29-30 or Jan. 2.

• Hourly: Enter 0350 absent w/notice, 0355 absent w/o notice or 0460 dock time for the designated leave time days of Dec. 29-30 and Jan. 2 if an employee is on extended leave (military leave, sickness and accident, or workers’ compensation) or if an employee is scheduled to work but fails to report.

• ​Salaried: Enter 0465 salaried pass out with supervisor approval for designated leave time days of Dec. 29-30 and Jan 2. 0465 salaried pass out is only permitted for these days and cannot be used as a substitute for PTO on any other day. Enter 0460 dock time for the designated leave time days of Dec. 29-30 and Jan. 2 only if an employee should not receive holiday pay.

W-2 Name and Address Verification and State Withholding

Shipbuilders should review their name, address and state tax withholding on their pay stubs for accuracy. W-2s will be mailed to the address that appears on the check stub. The first and last name printed on the stub should appear exactly as it does on the shipbuilder’s social security card. If you need to submit an address or name change, visit the HRIS website on MyNNS and follow instructions on the employee information updates page. Changes to addresses or names updated by HRIS by Jan. 9 will be reflected on the 2025 W-2.

​File a New 2026 IRS Form W-4 if Tax Status for 2025 is Exempt

If you wish to claim an exempt withholding status for federal tax purposes in 2026, you must submit a new W-4 form no later than Feb. 17. If you claimed exempt in 2025, and Payroll does not receive a new signed IRS Form W-4 by Feb. 17, your federal income tax withholding status will be changed to single/no exemption for the pay period ending March 8.

New Overtime Deduction for 2025

Some shipbuilders may qualify for a new overtime deduction beginning in 2025. Eligible employees may be able to deduct a portion of their qualified overtime earnings on their federal income tax return, potentially lowering their taxable income. Look for more information on this subject in January.

What overtime is deductible?

• Only overtime pay required under the Fair Labor Standards Act (FLSA) is deductible.
• Generally, FLSA requires overtime pay for hours worked over 40 hours in a workweek at a rate of no less than 1½ times the regular hourly rate.
• If you receive overtime pay that is more than 1½ times your regular hourly rate, only the premium time required under FLSA is deductible. For example, if your regular hourly rate is $20 per hour, $30 is the required hourly rate for overtime hours. This means that $10 per hour of overtime may be deductible on your federal income tax return. In this example, any overtime premium pay in excess of $10 an hour would not be deductible on your tax return.
• Overtime deduction is limited to $12,500 per return ($25,000 for joint return).

The Internal Revenue Service (IRS) recently published guidance for this deduction for the 2025 tax year:

• The IRS did not update the W-2 forms to include overtime information.
• Employers are not required to report overtime separately.
• If you plan to claim this deduction, please keep your final pay stub. The IRS provides instructions on how to calculate the deduction at IRS overtime guidance.
• Final 2025 pay stub dates are Dec. 19 for salaried shipbuilders and Dec. 26 for represented shipbuilders.

Disclaimer: This information is provided for general informational purposes only and should not be relied upon as tax advice; employees should consult their own tax advisor regarding their tax returns.