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There are more reporting requirements to consider, but payroll will be using box 12, code TA on Form W-2 to show employer-related contributions. Communicating the Changes Developing a plan on what and how to communicate all the relevant OBBBA requirements is necessary for year-end 2026. Here are some suggestions: For employee questions centering on why amounts still need to be withheld, develop an explanation that the law requires only reporting by the employer and employees are to use their individual tax return to take the deduction. Refer them to the latest IRS FAQ document (FS-2026-13) for overtime pay, and tell them the requirement to withhold amounts on tip income remains. There also could be revised guidance for individuals coming out, so pay attention to IRS releases on this matter. Payroll should never be offering up tax advice to employees. Employees themselves can make adjustments to reduce pay-as-you-go withholding by filing a new Form W-4 with the employer; the Internal
Trump Accounts are similar to other qualified deferred compensation plans, but there are many unique wrinkles that employers that choose to offer this benefit must take into account.
Trump Accounts and Employers The many moving parts of the OBBBA provision creating a quick- start retirement savings benefit account for children include several reporting and remittance requirements so contributions can be tax-free. Trump Accounts are similar to other qualified deferred compensation plans, but there are many unique wrinkles that employers that choose to offer this benefit must take into account. For example, employers are limited to $2,500 per year (this will be indexed for inflation) that they can put into the children’s accounts on behalf of the employee. That maximum amount is per employee, not for each child of that employee.
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GLOBAL PAYROLL MAGAZINE ISSUE 28
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