TPS Updates for Honduras, Nepal, Nicaragua and Somalia_Immediate.docx

A federal district court vacated the Department of Homeland Security’s (DHS) decision to terminate Temporary Protected Status (TPS) for Honduras, Nicaragua, and Nepal. DHS has terminated TPS for Somalia set to expire March 17, 2026

IRS Releases 2026 Publication 15-B

The Internal Revenue Service (IRS) has released the 2026 version of Publication 15-B (Employer's Tax Guide to Fringe Benefits). Employers should review Publication 15-A to learn the requirements in 2026 regarding employment taxation.

IRS Releases 2026 Publication 15-A

The Internal Revenue Service (IRS) has posted the 2026 version of Publication 15-A, the Employer's Supplemental Tax Guide. Employers should review Publication 15-A to learn the requirements in 2026 regarding employment taxation.

IRS Releases 2026 Publication 15

The Internal Revenue Service has released Publication 15 (a/k/a Circular E) Employer’s Tax Guide for use in 2026

IRS Announces 2026 Medical Mileage Rate

On Dec. 29, 2025, the Internal Revenue Service announced that the standard mileage rate in 2026 for the use of an automobile to obtain medical care is 20.5 cents per mile. The rate decreased to 20.5 cents per mile from the 21 cents per mile rate effective in 2025.

New Federal Deductions for Qualified Overtime and Qualified Tips – How ADP Will Support You for Tax Years 2026 to 2028

As we previously reported, H.R.1, the One Big Beautiful Bill Act (the Act), was signed into law on July 4, 2025. The Act includes a federal income tax deduction for qualified overtime and qualified tips, effective for tax years 2025 through 2028.

For tax years 2026 through 2028, employers and payors are expected to report qualified overtime and qualified tip amounts on year-end informational tax returns. While overtime and tip information will be accumulated throughout the year, this is an annual requirement to report qualified amounts to your employees.

Treasury, IRS Provide Guidance for Tax Year 2025 for Individuals Claiming Deductions for Qualified Overtime and Qualified Tips

The Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) issued Notice 2025-69 (Notice 2025-69 or the Notice) on Nov. 21, 2025. The Notice offers guidance to individuals for claiming deductions for qualified overtime and qualified tips for tax year 2025. This guidance applies to new deductions for overtime and tips included in H.R. 1, The One Big Beautiful Bill Act (the Act), which was signed into law on July 4, 2025. Review the details here.

Treasury, IRS Provide Penalty Relief for Tax Year 2025 for Information Reporting on Tips and Overtime Under the One Big Beautiful Bill Act

The Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) issued Notice 2025-62 (the Notice) on November 5, 2025. The Notice offers transition-year penalty relief to employers, payroll services providers, and third-party settlement organizations (TPSOs) for tax year 2025 regarding new information reporting requirements under H.R. 1, “The One Big Beautiful Bill Act” (the Act), which was signed into law on July 4, 2025.

Additional guidance tipped occupations (including possible updates to the list of Treasury tipped occupation codes) and the exclusion for specified service trade or business will be released by the Internal Revenue Service (IRS) in the future.

Review the details here.

Review Pay Frequency Laws in States Where You Have Employees Working

Federal law does not address how often or when wages must be paid to employees. However, most states have pay frequency laws detailing such requirements. Some states have different pay frequency requirements based on industry or employee classification (exempt or nonexempt). While certain states allow employees to be paid monthly, other states require semi-monthly, bi-weekly, or even weekly payment. We highlight some of the unique laws here including for example laws in New York, California and Rhode Island.

A general overview of pay frequency and pay timing requirements by state is available here.

Pension Plan Limitations for 2026 Provided by IRS

Pension Plan Limitations for 2026 have been released by the IRS. The 401(k)-contribution limit is increased to $24,500. Any individual making $150,000 or more in FICA wages in 2025 must make catch-up contributions in 2026 on a post-tax basis (Roth).

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