Payroll Tax Changes for 2026: Forms 941, 940, W-2, W-4

Payroll tax form changes for 2026

Employer clients carry most of the new reporting. Their payroll has to split tips and the overtime premium from regular pay, use the higher wage base, and report new W-2 codes in early 2027. These pages cover the forms, the codes and the employer credits that changed with them.

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Payroll forms at a glance

The headline change on each payroll form page.

Form 941 changes for 2026
Social security wage base, 2026
$184,500
Form 940 changes for 2025
FUTA wage base per employee
$7,000
Form W-2 changes for 2026: new codes for tips, overtime and Trump accounts
New box 12 codes
TP, TT, TA
Form W-4 for 2026: the deductions worksheet is where the change is
Senior amount on worksheet lines 3a/3b
$6,000 each
Schedule SE changes: the 2025 wage base and the 2026 draft
2025 maximum subject to social security tax
$176,100

The pages in this section

17 pages, grouped for review.

Payroll forms

Form 941 changes for 2026Social security wage base, 2026: $184,500
Form 940 changes for 2025FUTA wage base per employee: $7,000
Form W-2 changes for 2026: new codes for tips, overtime and Trump accountsNew box 12 codes: TP, TT, TA
Form W-4 for 2026: the deductions worksheet is where the change isSenior amount on worksheet lines 3a/3b: $6,000 each
Schedule SE changes: the 2025 wage base and the 2026 draft2025 maximum subject to social security tax: $176,100

Tips and overtime in payroll

Tips and overtime reporting: what employers must track for 2026Penalty relief covered: 2025 only
Treasury tipped occupation codes: how the final list worksOccupations listed: More than 70
The qualified overtime deduction: only the premium countsMaximum deduction: $12,500 ($25,000 joint)
The no tax on tips deduction, for tax preparersMaximum deduction: $25,000 a year

Employer credits and benefits

The employer childcare credit (45F) gets a much higher capMaximum credit from 2026: $500,000
The paid family and medical leave credit is permanent and widerCredit rate: 12.5% to 25% of leave wages
Dependent care FSA limit: $7,500 for 20262026 exclusion: $7,500
HSA changes for 2026: who can now contribute2026 HSA limit (self-only / family): $4,400 / $8,750

Employer clients

Tax return changes for small employers2026 1099-NEC threshold: $2,000
Tax return changes for restaurants and barsStaff tips deduction, up to: $25,000 a year
Tax return changes for hotels and hospitality businessesBonus depreciation: 100% for property acquired after Jan 19, 2025
Tax return changes for construction contractorsCrew overtime deduction, up to: $12,500 ($25,000 joint)

Payroll setup to confirm with each employer

The 2025 penalty relief for tips and overtime reporting does not carry into 2026, so these items need to be in place for the full year.

Separate pay codes for cash tips, charged tips and the overtime premium.
A tipped occupation code for each tipped role.
The 2026 wage base loaded before the first pay run.
New W-4s requested from employees who expect the new deductions to change their withholding.

Quarterly checks

Reconcile Form 941 wages to the payroll register each quarter instead of at year end. A mismatch found in April is a correction; found in January it delays every W-2.

Frequently asked questions

Do employers report the overtime premium for 2025?

The IRS waived penalties for not reporting it separately on 2025 forms. That relief does not reach 2026, and the overtime deduction page explains what records employees need for 2025.

Which W-2 codes are new?

The 2026 Form W-2 adds box 12 codes TP, TT and TA, and splits box 14. The W-2 page sets out what goes in each.

Payroll tax form changes for 2026

Payroll forms at a glance

The pages in this section

Payroll setup to confirm with each employer

Quarterly checks

Frequently asked questions

Keep exploring

Sources

Start automating your books today

Payroll tax form changes for 2026

Payroll forms at a glance

The pages in this section

Payroll setup to confirm with each employer

Quarterly checks

Frequently asked questions

Keep exploring

Sources

Start automating your books today

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