Form 941 changes for 2026

• Social security tax: 6.2% each for employer and employee on wages up to $184,500; Medicare stays at 1.45% each with no cap.
• Aggregate filers must complete the new Aggregate Return Filers Only section, as a section 3504 agent, a CPEO or another third party.
• Refunds are issued by direct deposit under Executive Order 14247; an overpayment can still be applied to the next return on line 15b.
• Balances due on line 14 must be paid electronically.
• Form 941 return transcripts for 2023 and later are available in the business tax account.

The instructions explain that employees may deduct qualified tips and the overtime premium on their own returns, and that employers should use updated Forms W-4 and the Pub. 15-T procedures so the benefit shows in each paycheck. Tips of $20 or more a month and overtime pay remain subject to social security and Medicare tax.

Tax deposits leave the employer’s bank account like any other payment. With bank feeds in HelloBooks they appear in the ledger and can be matched against the 941 liability each quarter.

• Bank details on file for every employer client, now that refunds arrive by direct deposit.
• That no client still mails checks with Form 941.
• That payroll uses the 2026 Pub. 15-T tables and each tipped or hourly employee has a current W-4.