Payroll Tax Changes

1. Introduction 
2. Our Focus For Today 00:01:13
3. IRS Update 00:03:07
4. IRS Update - What We Will Cover 00:03:08
5. IRS - Pension Plans for 2026 00:03:17
6. IRS - Pension Plans for 2026 Cont’d 00:03:35
7. IRS Per Diems and FEIE 2026 00:03:58
8. IRS Transportation Fringe Benefits 2026 00:05:09
9. IRS Earned Income Credit 00:05:55
10. IRS Adoption Benefits 2026 00:06:56
11. FSA Changes 2026 00:07:19
12. FSA Changes 2026 Cont’d 00:07:37
13. High Deductible Health Plan 2026 00:08:13
14. Supplemental Tax Rates - 2026 00:08:38
15. Exempt from Levy Amounts 2026—Pub 1494 00:09:02
16. Tax on Tips - Qualified Tip Deduction 00:10:02
17. Tax on Tips - Withholding 00:10:58
18. Tax on Overtime - Qualified Overtime 00:12:36
19. Tax on Overtime - Filing Information Returns 00:15:54
20. Guidance on Tips and Overtime 00:16:32
21. Penalties on Tips and Overtime 00:18:55
22. Student Loan Payment Assistance 2025 00:17:59
23. Publication 15 2026 - Circular 00:18:49
24. Publication 15 – A 2026 00:19:04
25. Publication 15 – B 2026 00:19:11
26. Tax Tables—2026—Pub 15-T 00:19:21
27. Nonresident Alien Table 2026 00:19:37
28. Instructions for Forms W-2 and W-3 for 2025 00:19:51
29. Instructions for Forms W-2 and W-3 for 2026 00:20:23
30. Form W-2 for 2026 00:21:21
31. Federal Holidays For 2026 00:21:37
32. Taxation of Fringe Benefits 00:28:18
33. Form 940 for 2025 00:30:32
34. Form 940 for 2025 Cont’d 00:31:19
35. FUTA Credit Reduction for 2026 00:31:24
36. Form 941 for 2026 - Part 1 00:32:19
37. Form 941 for 2026 - Part 2-5 00:32:45
38. Form W-2 for 2025 00:32:49
39. Form W-3 for 2025 00:33:00
40. Form W-2C 00:34:24
41. Form W-3C 00:35:37
42. Form W-4 for 2026 00:35:46
43. Form 941-X Form Series 00:37:20
44. Third-Party Sick Pay Form 00:37:00
45. Federal And State Updates 01:40:13
46. Department of Education Update 00:40:18
47. Child Support 00:40:47
48. State Update: Be Sure To Check… 00:41:24
49. State SUI Wage Bases 2026 00:46:49
50. Department of Labor 01:00:44
51. Pending Updates to the Salary Level Tests 01:00:48
52. Standard Salary Level 01:01:04
53. Social Security Update 01:02:11
54. SSA Update What We Will Cover 01:02:13
55. EFW-2 Record Changes for 2025 01:02:36
56. Social Security 01:02:45
57. Medicare 01:03:12
58. Additional Medicare Tax 01:03:20
59. Filing limits are Set 01:03:36
60. BSO Sign-up 0101:03:
61. Filing Requirements 2026 01:04:36
62. Electronic Forms W-2 to Employees 01:05:28
63. Disclosure Requirements 01:05:53
64. Disclosure Example from Yale 01:06:16
65. Disclosure Example from YaleCont’d 01:06:31
66. When to Use Form W-2c 01:08:32
67. Filing Requirements 2025 01:09:31
68. Review of Filing Deadlines for 2025 01:10:21
69. Form W-2 Due Dates 01:11:07
70. Form W-2 Electronic Filing Requirements 01:11:26
71. Reconciliation Form 01:12:00
72. Form W-2 Reconciliation Form 01:12:21
73. Best Practices Review 01:12:43
74. Penalties In Effect 01:14:15
75. Penalties In Effect 2026 01:14:39
76. De Minimis Errors - New Due Date And Penalties Updated 01:16:02
77. De Minimis Errors - Safe Harbor 01:16:45
78. Social Security Number Verification Service (SSNVS) 01:17:54
79. With SSNVS You May 01:18:19
80. Results Received 01:19:22
81. Mismatch Codes 01:19:55
82. Results Received 01:21:39
83. Sample Letter Employers Can Give to Employees 01:21:49
84. Reconciliations 01:22:12
85. Their Reconciliation Process of Your Forms 01:22:14
86. Reconciliation Process 01:23:32
87. Items Reconciled 01:22:52
88. SSA Reconciliation Points 01:23:20
89. SSA Reconciliation Points Cont’d 01:24:38
90. Rejected Wage Reports 01:24:43
91. Reconciliation of Form 941 to Form W-2 01:26:14
92. Reconcile Form W-2 to Itself 01:26:23
93. Reconciliation 01:27:42
94. Reconciliation -  Box 13 01:27:58
95. Year-End 01:29:54
96. Notifying the Employees Memo 01:29:55
97. Military Spouse Exemptions 01:31:33
98. Action Item Checklists 01:32:38
99. Year End 01:32:45
100. New Year 01:33:03
101. Form W-2 01:33:50
102. Duplicate Form W-2 01:34:05
103. Sample Request For Duplicate Form W-2 01:36:39
104. Links and Websites 01:37:42
105. Questions? 01:37:47
106. Presentation Slides 01:47:45

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  Vicki M. Lambert, CPP

  Vicki M. Lambert, CPP, is President and Academic Director of The Payroll Advisor™, a firm specializing in payroll education and training. The company offers a payroll news service which keeps payroll professionals up-to-date on the latest rules and regulations.With over 35 years of hands-on experi [...]

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• Backup Withholding 00:09:00
• Business Services Online (BSO) 00:02:14, 00:33:58, 01:02:35, 01:04:06, 01:09:27
• Child Support Enforcement 00:40:40
• De Minimis 01:16:10
• Department of Labor (DOL) 00:02:00, 01:00:
• EITC - Earned Income Tax Credit 00:05:55
• Exempt 00:09:02, 00:36:04, 00:46:09, 01:01:19, 01:30:09
• Federal Unemployment Tax Act (FUTA) 00:31:25
• Foreign Earned Income Exclusion (FEIE) 00:03:58
• Form 940 00:01:51, 00:30:32
• Form 941 00:01:50, 00:32:19, 00:37:30, 01:22:36, 01:33:51
• Form 941-X 00:37:11
• Form W-2 00:01:53, 00:06:32, 00:10:09, 00:16:02, 00:20:23, 00:32:59, 00:39:51, 01:02:32, 01:04:38, 01:06:38, 01:22:43, 01:25:29
• Form W-2C 00:34:24, 01:02:29, 01:04:16, 01:08:34
• Form W-3 00:19:51, 00:33:00, 01:12:10
• Form W-3C 00:35:37
• Form W-4 00:01:54, 0.0:35:49, 00:45:57, 01:29:58
• Fringe Benefits 00:01:38, 00:05:42, 00:22:19, 00:30:17
• Garnishments 00:53:59
• Income Withholding for Support (IWO) 00:41:14
• Independent Contractor 01:12:55
• Levy 00:09:03
• Minimum Wage 00:02:01, 00:47:23, 00:54:09
• Nonresident Alien (NRA)  00:19:40
• OASDI 00:02:10
• One Big Beautiful Bill Act (OBBB) 00:01:43, 00:05:24, 00:08:43, 00:18:02
• Overtime 00:12:37, 00:11:58
• Pension Plan 00:03:10
• Per Diem 00:01:33, 00:03:11
• Publication 15-T  00:05:07, 00:19:21
• Reconciliation 01:22:12, 01:26:15
• Standard Mileage Rate 00:01:35, 00:03:12
• State Unemployment Insurance (SUI) 00:02:03, 00:41:33
• Wage 00:02:08, 00:08:58, 01:10:53, 01:16:50, 01:23:51, 01:28:33
• Wage Base 00:02:05, 00:41:34, 01:02:21

Backup Withholding: Backup withholding is the tax that is levied on investment income, at an established tax rate, as the investor withdraws it. Backup withholding helps to ensure that government tax-collecting agencies (such as the IRS or Canada Revenue Agency) will be able to receive income taxes owed to them from investors' earnings. (www.investopedia.com)

Business Services Online (BSO): The Business Services Online (BSO) Suite of Services allows organizations, businesses, individuals, employers, attorneys, non-attorneys representing Social Security claimants, and third-parties to exchange information with Social Security securely over the internet.

Child Support: Child support is an ongoing, periodic payment made by a parent for the financial benefit of a child following the end of a marriage or other similar relationship.

Child Support Enforcement: The Office of Child Support Enforcement is a United States government office responsible for overseeing the U.S. child support program. Child support is the obligation on parents to provide financial support for their children.

De Minimis: Too trivial or minor to merit consideration.

Department of Labor (DOL): The United States Department of Labor is a cabinet-level department of the U.S. federal government responsible for occupational safety, wage and hour standards, unemployment insurance benefits, reemployment services, and some economic statistics; many U.S. states also have such departments.

EITC - Earned Income Tax Credit : The United States federal earned income tax credit or earned income credit is a refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children. The amount of EITC benefit depends on a recipient's income and number of children.

Exempt : Exempt employee is a term that refers to a category of employees set out in the Fair Labor Standards Act. They do not receive overtime pay, nor do they qualify for the minimum wage

Federal Unemployment Tax Act (FUTA): The Federal Unemployment Tax Act (FUTA) is a federal law that imposes an unemployment tax on employers. The FUTA tax funds the federal government's oversight of each state's unemployment program. Only employers pay FUTA tax. You must deposit the tax quarterly and file an annual form.

Form 940: Use Form 940 to report your annual Federal Unemployment Tax Act (FUTA) tax. Together with state unemployment tax systems, the FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs. Most employers pay both a federal and a state unemployment tax. Only employers pay FUTA tax.

Form 941: Federal form 941, also called a quarterly federal tax return, is an IRS return that employers use to report their FICA taxes paid and owed for the period. The IRS uses this form to calculate the amount of employer tax payments made during the year as well as the amount of taxes due at the end of the year.

Form 941-X: Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund.

Form W-2: Form W-2 is an Internal Revenue Service tax form used in the United States to report wages paid to employees and the taxes withheld from them. Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship. - Wikipedia (https://en.wikipedia.org/)

Form W-2C: W-2C is a form used to make corrections on previously issued wage/tax information (W-2s) from current or prior years. Like Form W-2, it is a multi-use form used to report corrected wages to the IRS (Internal Revenue Service), FTB (Franchise Tax Board), and SSA (Social Security Administration).

Form W-3: Form W-3 is a tax form used by employers to report combined employee income to the Internal Revenue Service (IRS) and the Social Security Administration. Employers who send out more than one Form W-2 to employees must complete and send this form to summarize their total salary payment and withholding amounts.

Form W-3C: Form W-3c is the transmittal of W-2c Forms (Corrected Wage and Tax Statements). Form W-3c is submitted with Form W-2c in most situations when you're paper filing with the SSA. It provides a summary of the data found in the W-2c Form(s) accompanying it.

Form W-4: Form W-4 (otherwise known as the "Employee's Withholding Allowance Certificate") is an Internal Revenue Service (IRS) tax form completed by an employee in the United States to indicate his or her tax situation (exemptions, status, etc.) to the employer.

Fringe Benefits: An extra benefit supplementing an employee's salary, for example, a company car, subsidized meals, health insurance, etc.

Garnishment: A legal summons or warning concerning the attachment of property to satisfy a debt

Income Withholding for Support (IWO): The IWO is the OMB-approved form used for income withholding in tribal, intrastate, and interstate cases as well as all child support orders that were initially issued in the state on or after January 1, 1994, and all child support orders that were initially issued (or modified) in the state before January 1, 1994 if arrearages occur. This form is the standard format prescribed by the Secretary in accordance with USC 42 §666(b)(6)(A)(ii). The OMB-approved IWO must be issued to employers or other income payers to collect child support.

Independent Contractor: An independent contractor is a person or entity contracted to perform work or provide services to another entity as a non-employee. As a result, independent contractors must pay their own Social Security and Medicare taxes. - Investopedia (https://www.investopedia.com/)

Levy: A tax levy, under United States Federal law, is an administrative action by the Internal Revenue Service under statutory authority, generally without going to court, to seize property to satisfy a tax liability. The levy "includes the power of distraint and seizure by any means".

Minimum Wage: The lowest wage paid or permitted to be paid specifically fixed by a legal authority or by contract as the least that may be paid either to employed persons generally or to a particular category of employed persons.

Nonresident Alien (NRA): This income is taxed at a flat 30% rate, unless a tax treaty specifies a lower rate. Nonresident aliens must file and pay any tax due using Form 1040NR, U.S. Nonresident Alien Income Tax Return or Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens with No Dependents.

OASDI: OASDI stands for old age, survivors, and disability insurance tax, and the money that your employer collects goes to the federal government in order to fund the Social Security program.

One Big Beautiful Bill Act (OBBB): The One Big Beautiful Bill Act, or the Big Beautiful Bill, is a U.S. federal statute passed by the 119th United States Congress containing tax and spending policies that form the core of President Donald Trump's second-term agenda. The bill was signed into law by President Trump on July 4, 2025.

Overtime: Overtime is time and a half of what an employee earns for every hour worked over 40 in a workweek. The FLSA salary threshold is the minimum salary employers must pay employees for them to be exempt from overtime wages.

Pension Plan: A pension fund, also known as a superannuation fund in some countries, is any program, fund, or scheme which provides retirement income. Pension funds typically have large amounts of money to invest and are the major investors in listed and private companies.

Per Diem: (Latin for "per day" or "for each day") or daily allowance is a specific amount of money an organization gives an individual, often an employee, per day to cover living expenses when traveling for work. - Wikipedia (https://en.wikipedia.org)

Publication 15-T: Employers use Publication 15-T to figure the amount of federal income tax to withhold from their employees' wages.

Reconciliation: Payroll reconciliation is when you compare your payroll register with the amount you're planning to pay out to your employees to confirm those numbers match. The simplest way to think about it is double-checking your math to ensure that you pay your employees correctly. Payroll reconciliation should happen frequently.

Standard Mileage Rate: The standard mileage rate, also known as the mileage per diem or deductible mileage, is the default cost per mile set by the Internal Revenue Service (IRS) for taxpayers who deduct the expense of using their personal vehicles for business, charitable, or medical purposes.

State Unemployment Insurance (SUI): The Federal-State Unemployment Insurance Program provides unemployment benefits to eligible workers who are unemployed through no fault of their own.

Wage: A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker.

Wage Base: The taxable wage base is the amount of an employee's income from which the IRS calculates an individual's tax liability for Social Security. In other words, the taxable wage base is the income an employee earns on which Social Security taxes must be paid.