How can payroll professionals comply with the tumultuous changes 2026 has in store?


If you thought payroll in 2025 was difficult, you haven’t seen anything yet. In 2026, payroll departments will confront two gigantic items simultaneously.

First is the implementation of the One Big Beautiful Bill Act’s provisions on deductible tips and overtime and their impact on income tax withholding, the increase in the tax-free amount of dependent care benefits and the increase in the reportable amount for 1099 reporting. Second is SECURE 2.0’s payroll-heavy Roth catch-up contribution provision. Put them together and what do you get? A Mount Everest of potentially payroll-threatening problems.

Additionally, the Trump administration continues to crack down on the employment of millions of noncitizens. That means intense scrutiny of your I-9 forms by immigration agents.

And that’s just the beginning. The OBBBA revoked the pandemic-era employee retention credit, retroactive to Jan. 31, 2024, but that hasn’t stopped the IRS from ramping up ERC-related audits.

The IRS will not let you wiggle out of tax penalties because your computer program messed up. But it’s not that categorical for the Tax Court. An important Tax Court decision sets the parameters for reasonable cause relief, if you take all the right steps.

On January 15, join payroll and tax-compliance expert Alice Gilman as she walks you through how to navigate these shifting regulations, stay compliant and avoid costly mistakes.

  • Roth 401(k) catch-up contributions. This SECURE 2.0 provision kicks in this year and promises to challenge payroll professionals on multiple fronts.
  • Tracking tips and overtime. Employees can deduct their tips and overtime. But they can’t deduct anything if you don’t report it on their W-2s. This means you must track these items every pay period.
  • I-9 self-audit strategies. Conduct compliance reviews to meet stricter immigration enforcement protocols.
  • Beyond the I-9 paperwork. Immigration agents are routinely raiding workplaces, but you have rights, too.
  • What’s up with the DOL. The Wage and Hour Division has been issuing subregulatory guidance that affects FLSA and FMLA administration.
  • PAID is back. PAID was the DOL’s alternative dispute-resolution program for FLSA violations. The uptake wasn’t terrific, so PAID was retired. But it’s back now, more robust than ever.
  • IRS audit protocols. Master the latest IRS audit rules, including ERC audits, with 7 key stress-reducing tips.
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