Time to update your systems: The Social Security Administration (SSA) has announced the 2027 Social Security taxable wage base. Next year’s number will increase to $192,300 – that’s $7,800 more than the current amount of $184,500. So, the intermediate projection in the 2026 Social Security Trustees Report ($190,200) was $2,100 low. The Social Security tax, […]
Mid-year minimum wage increases catch more payroll teams off guard than January changes do. Several state, local and industry-specific minimum wage changes take effect on July 1, 2026, including in Alaska, Washington, D.C., Oregon and several local jurisdictions. Minimum Wage Changes In Alaska, the hourly rate increases from $13 to $14. This is the second […]
Missed payroll is a federal wage violation. A Newport Beach construction contractor learned that the hard way; it was ordered to pay $468,505 after the DOL found 137 workers went without pay and overtime. The case broadens the usual wage and hour conversation beyond overtime math to a more fundamental question: Did workers get paid […]
Interest rates for the second quarter will drop, the IRS recently announced. According to Revenue Ruling 2026-5, the rates for April, May and June of 2026 will be:
The Department of Labor (DOL) recently issued a Federal Register notice increasing the minimum wage for certain federal contractors. Here are the details contained in the February 9, 2026, notice. First, it’s important to clarify that the rate change applies to federal contracts covered by Executive Order (EO) 13658 – i.e., those entered into between […]
Be on the lookout for an updated notice, requiring you to provide healthcare coverage to an employee’s child. As in the past, if you receive a National Medical Support Notice (NMSN), you’ll need to act promptly to enroll the child in your group health plan and start withholding premiums from the employee’s wages — regardless […]
Employers in states that have paid family and medical leave programs will be relieved to know the IRS has extended its reporting deadline. In fact, employers have an extra year to add information about this type of paid time off to Forms W-2. In Notice 2026-6, the IRS extended the transition period that it had […]
The IRS has finalized the tax year 2026 Form W-2, solidifying more of the reporting requirements established by federal legislation passed last year. Plus, the final version of General Instructions for Forms W-2 and W-3 was released shortly after the form. So now, Payroll pros have answers to questions they’ve been asking since the One […]
After payday, an employee flags a missing differential. HR sends the details to payroll, and the team begins retracing punches, schedules, and pay rules. By the next day, the issue has escalated to Finance because the fix now requires a correction run. Once payroll reaches that stage, the questions change. What broke? When did it […]
If someone qualifies as exempt from the overtime requirements of the Fair Labor Standards Act (FLSA), is an exempt classification mandatory? The Department of Labor (DOL) recently confirmed that an exempt classification isn’t a must, even if an employer is able to check all the boxes for exemption under the FLSA. Furthermore, in cases where […]
A new opinion letter looked at whether one company needed to add bonuses into its overtime calculations under federal law. The answer from the Department of Labor (DOL)? Yes. That meant the company dropped the ball and had to either change its bonus plan or revise its method of calculating overtime. Here’s a recap of […]
IRS has released 2026 mileage rates and other updates impacting employees who drive personal vehicles for work or employer-provided vehicles. First, IRS said in a recent notice that the business standard mileage rate for 2026 is 72.5 cents per mile. That’s a 2.5-cent increase over the 2025 mileage rate of 70 cents per mile. The […]
The IRS has revised Form W-4 for 2026, making the newly revised form available to employers during mid-December 2025. The updated form incorporates several of the income tax provisions contained in the One Big Beautiful Bill Act (OBBBA), and it comes on the heels of proposed changes to the 2026 Form W-2. Some OBBBA provisions […]
