The Internal Revenue Service released draft versions of the 2026 Forms W-2 and W-2C. The revisions incorporate changes from the OBBBA which include…
Box 12 has three new codes:
TA – Employer contributions to a Trump Account
TP – Total amount of Qualified Tips
And TT – Total amount of Qualified Overtime Compensation
Box 14 is now 14a, which includes what was originally reported in 14 such as…
State Disability Insurance Taxes Withheld
Union Dues
Uniform Payments
Health Insurance Premiums Deducted
Nontaxable Income
And Educational Assistance Payments.
Box 14b will now include a Treasury mandated Tipped Occupation Code.
The revised forms can be found at the following web addresses.
https://www.irs.gov/pub/irs-dft/fw2–dft.pdf
https://www.irs.gov/pub/irs-dft/fw2c–dft.pdf
Let me leave you with this…
As soon as I read this, I felt a migraine coming on. If handled incorrectly, these changes will turn into a S**t Show.
What would happen if you got the overtime wrong or didn’t report it at all? Overtime has never been reported separately on a W-2 before.
Tips have always been reported, but the Tipped Occupation Codes are new. What would happen if you get them wrong, or don’t put them on the W-2 in the first place?
You’re going to have some very unhappy employees when they do their returns.
I’d suggest that you spend some time educating your employees. Ask them to actually look at their pay stubs throughout the year and to report any potential problems. Talk to them about the Occupation Codes that will be reported.
Make sure they’re in agreement with what you’re reporting.
Many of these people will file their returns early because they receive major refunds based on Earned Income and Child Tax Credits. Get all of your ducks in a row before they walk into an H&R Block Office.
It doesn’t take much to lose a good employee nowadays. And when Mama doesn’t get her expected tax refund so she can take the kiddies to Disneyland over the summer, ain’t no one gonna be happy.
Especially you when that employee doesn’t show up to work on a Monday.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.SalarySolutions.net
www.AccountingSolutionsLtd.com
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