Forms W-2 (to employees and the SSA, with Form W-3), Forms 1099-NEC (to recipients and the IRS), Form 941 for the fourth quarter and Form 940 are generally due January 31. Because January 31, 2027 is a Sunday, these fall on Monday, February 1, 2027. Form 940 can be filed by February 10, 2027 if all FUTA tax was deposited on time. Most Forms 1099-MISC are due to recipients by January 31 and to the IRS by February 28 on paper or March 31 electronically, adjusted for weekends.

Tax Year 2026 Deadline Calendar

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Dates follow the standard January 31, February 28 and March 31 rules, moved to the next business day when they fall on a weekend or legal holiday. State W-2, 1099 and unemployment filings have their own deadlines. Confirm all dates against the current IRS instructions.

What Changed for Tax Year 2026

New W-2 Reporting for Tips and Overtime

The final 2026 Form W-2 instructions, released in January 2026, add reporting tied to the One Big Beautiful Bill Act deductions:

• Box 12 code TP reports the total cash tips the employee reported to the employer.
• Box 12 code TT reports qualified overtime compensation, which is only the premium portion of overtime required under the Fair Labor Standards Act (for example, the “half” in time-and-a-half).
• Box 14 is split into 14a (other) and 14b, where employers enter the Treasury tipped occupation code for employees with tips reported under code TP.
• Box 12 code TA covers employer contributions to the new accounts created by the Act.

Tips and qualified overtime generally remain subject to income tax withholding and payroll taxes. The deductions are claimed by employees on their own returns; the employer’s job is accurate reporting. Payroll systems need to track FLSA overtime premiums separately from other overtime, which is easiest if set up before the year closes.

Higher 1099 Reporting Thresholds

For payments made in 2026, the reporting threshold for Forms 1099-NEC and 1099-MISC rose from 600to2,000, with inflation indexing from 2027. Some categories, such as royalties, have their own thresholds, so check each box. For Form 1099-K, the threshold for payment processors returned to more than $20,000 and more than 200 transactions.

December: Pre-Year-End Payroll Checklist

• Confirm employee names, addresses and SSNs match Social Security records
• Process final bonuses, commissions and adjustments in the correct year
• Record taxable fringe benefits, such as personal use of company vehicles and certain gift cards
• Record health insurance for more-than-2% S corporation shareholders in wages
• Reconcile year-to-date wages and taxes with the four Forms 941
• Confirm tips and FLSA overtime premiums are tracked for codes TP and TT
• Check retirement plan deferrals against annual limits
• Confirm all federal and state tax deposits were made on schedule
• Collect a Form W-9 from every contractor you paid
• Review state unemployment rates for the coming year

Forms W-2 and W-3: Key Points

• Issue a W-2 to every employee you paid wages to during the year, including employees who left.
• File Copy A with the SSA, with Form W-3 as the transmittal if filing on paper.
• Reconcile W-2 totals with Forms 941 for the year before filing; mismatches lead to IRS or SSA notices.
• Correct errors with Forms W-2c and W-3c.
• If you file 10 or more information returns of any type in a calendar year, you generally must file electronically.

Forms 1099: Employees vs Contractors

Workers you treat as independent contractors receive a 1099-NEC, not a W-2, if payments meet the threshold. The classification must be correct under IRS and state tests; misclassifying employees as contractors can lead to back taxes and penalties. Payments to corporations are generally exempt from 1099-NEC reporting, with exceptions such as attorneys’ fees, and payments made by credit card or payment apps are generally reported by the processor on Form 1099-K rather than by you.

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Forms 941 and 940

Form 941 reports federal income tax withholding and Social Security and Medicare taxes each quarter; the fourth-quarter return is due with the W-2s. Form 940 reports annual federal unemployment (FUTA) tax. Employers in states with outstanding federal unemployment loans may face a credit reduction that increases FUTA tax, so check the list the Department of Labor publishes each November.

Penalties and How to Avoid Them

The IRS can charge penalties for each information return (W-2 or 1099) that is filed late, not filed, filed with incorrect information or not furnished to the recipient, with amounts that rise the later the correction is made. Late deposits and late payroll returns carry separate penalties and interest. The simplest protection is a reconciled payroll file, verified taxpayer details and filing well before the deadline.

Common Year-End Payroll Mistakes

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Frequently Asked Questions

Start Year-End in December

A smooth January starts with a December reconciliation. Verify employee and contractor details, track the new tips and overtime data, apply the higher 1099 thresholds and reconcile wages to quarterly returns before you file.

This article provides general information and is not individualized tax or payroll advice. Forms, thresholds and deadlines change; confirm with current IRS and SSA instructions.

Sources: IRS: About Form W-2 · IRS: About Form 1099-NEC · IRS: About Form 941 · IRS: About Form 940