February 2026

 

News

Employees in Puerto Rico Entitled to Special Leave Due to Influenza Outbreak

On Jan.  27, 2026, the governor of Puerto Rico issued Executive Order 2026-005 (EO 2026-006), declaring a public health emergency and implementing an additional 5-day paid sick leave requirement for non-exempt employees due to an influenza outbreak on the Island.

Under 2026-005, non-exempt employees who have been diagnosed with or are suspected of having influenza are only entitled to the additional five paid working days of leave once accrued paid sick leave and any other paid leave entitlement (e.g. vacation) has been exhausted. 

Appeals Court Reinstates TPS Termination for Honduras, Nepal and Nicaragua

:  The U.S. Court of Appeals for the Ninth Circuit has reversed a lower district court’s order vacating the Department of Homeland Security’s (DHS) termination of Temporary Protected Status (TPS) for Honduras, Nepal, and Nicaragua.   The district court’s order is no longer in effect while the appeal proceeds.


Court Postpones Termination of Temporary Protected Status for Haiti

A federal district court has postponed the Department of Homeland Security’s (DHS) decision to terminate Temporary Protected Status (TPS) for Haiti pending further court action. TPS for Haiti would have expired effective Feb. 3, 2026.

IRS Announces 2026 Automobile Business Use Mileage Rates

 On Dec. 29, 2025, the Internal Revenue Service issued via Notice 2026-10 the 2026 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, moving, and charitable purposes.

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.
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