Employers in 2026 will no longer be able to deduct from their corporate tax liability the cost of most employer-provided meals and de minimis food at the workplace. Changes in 2026 Retirement Plan Arrangements A key part of the Secure 2.0 Act, which was passed in 2022, begins in earnest next year. Final regulations governing the management of 401(k)- type retirement plans were published mid-September. Starting in 2026, those nearing retirement age who earn more than the “catch- up wage threshold” amount designated for the year by the IRS ($145,000 in 2025) will still be allowed to contribute additional amounts as “catch- up” contributions to their employer’s 401(k)-type plan, but there will be no potential exclusion from income tax of those contributions. For payroll, helping to calculate the taxable amounts for inclusion on Form W-2 is necessary, but the final regulations allow employers to
Beyond these changes, what is not different from past years is the plethora of inflationary adjustments and indexed amounts for 2026 that will need to be considered.
use a reasonable, good-faith interpretation of statutory provisions in implementing the catch-up changes for 2026. Beyond these changes, what is not different from past years is the plethora of inflationary adjustments and indexed amounts for 2026 that will need to be considered. There will be more information in the coming weeks to augment the year-end process for payroll professionals in the U.S., but this year-end is definitely a lot different than others.
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ISSUE 16 GLOBAL PAYROLL MAGAZINE
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