Tax return changes for small employers

For 2026, employers must report tips, tipped occupation codes and qualified overtime separately, and contractors need a 1099-NEC only from $2,000. Employer payments toward employees’ student loans stay tax-free up to $5,250 a year under a written educational assistance program, now permanently.

Eligible small businesses can claim an employer childcare credit of up to $600,000 from 2026, and the paid leave credit is permanent. Employers can also add up to $2,500 a year to an employee’s Trump Account.

• Is your payroll provider ready to report tips and overtime separately for 2026?
• Do you pay any employee student loans, and is there a written program?
• Which benefits would you consider adding for 2026?

Give each new benefit its own expense account, so credits and exclusions can be documented. HelloBooks tracks vendor payments against the 1099 threshold with W-9s on file, so the January filing list comes straight from the books.