10/24/2026
The end of the year looks different from the payroll side. And 2026 has introduced some new requirements that are worth knowing about now — not in January when W-2 preparation is already underway.
For businesses that pay tips or overtime, the IRS now requires three additional reporting boxes on W-2 forms: Box 12 Code TP for certain tip amounts, Code TT for employer-allocated tips, and Box 14b for qualified overtime compensation. If your payroll system isn't configured for these, the time to find out is now — not the week you're trying to get forms out.
There's also the 1099-NEC threshold change to factor in. The contractor reporting requirement moved from $600 to $2,000 this year, which affects how many forms you'll need to prepare and file by January 31.
None of this is complicated once you know it. But payroll errors and late forms carry penalties that add up quickly — and they tend to surface in January when there's the least time to fix them gracefully.
If your payroll team or advisor hasn't walked through the 2026 year-end requirements yet, October is a good time to have that conversation.