May 2026
 

Federal Updates

TPS Updates for Ethiopia, South Sudan, Burma, Syria, Somalia and Haiti (Updated)

05/07/26

The Department of Homeland Security (DHS) announced termination of Temporary Protected Status (TPS) for six countries. Courts have blocked termination for these countries.
Monday, May 4, 2026/Author: ADP Admin/Number of views (620)/Comments (0)/
Categories: Compliance Corner Federal Compliance Update
Tags: Compliance Corner05/07/26

Treasury Publishes Final Rules Listing Occupations that Qualify for No Tax on Tips Deduction and Provides Additional Guidance on Qualified Tips

05/07/26

The U.S. Department of the Treasury (Treasury) has finalized regulations  under the new “No Tax on Tips” deduction, identifying which occupations are eligible for the new deduction because they customarily and regularly received tips as of Dec. 31, 2024, and defining “qualified tips.”   The Listed Occupations include corresponding Treasury Tipped Occupation Codes (TTOCs) which employers must report on 2026 tax forms.  The tax regulations do not alter the Fair Labor Standards Act (FLSA) wage and hour rules or tip credit eligibility.
Monday, May 4, 2026/Author: ADP Admin/Number of views (604)/Comments (0)/
Categories: Compliance Corner Federal Compliance Update
Tags: Compliance Corner05/07/26

ICE Updates Form I-9 Enforcement Guidance

05/07/26

U.S. Immigration and Customs Enforcement has updated guidance on how it will view Form I-9 errors. The list of errors includes items that that are now reclassified as “substantive” errors and therefore subject to immediate penalties.
Monday, May 4, 2026/Author: ADP Admin/Number of views (650)/Comments (0)/
Categories: Compliance Corner Federal Compliance Update
Tags: Compliance Corner05/07/26

IRS Announces 2026 Automobile Business Use Mileage Rates

02/05/26

 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.
Tuesday, February 3, 2026/Author: ADP Admin/Number of views (3022)/Comments (0)/
Categories: Compliance Corner Federal Compliance Update
Tags: Compliance Corner02/05/26

New Federal Deductions for Qualified Overtime and Qualified Tips – How ADP Will Support You for Tax Years 2026 to 2028

01/08/26

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.
Tuesday, January 6, 2026/Author: ADP Admin/Number of views (3768)/Comments (0)/
Categories: Compliance Corner Federal Compliance Update
Tags: Compliance Corner01/08/26

Treasury, IRS Provide Penalty Relief for Tax Year 2025 for Information Reporting on Tips and Overtime Under the One Big Beautiful Bill Act

12/04/25

The Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) issued Notice 2025-62 (the Notice) on November 5, 2025. The Notice offers transition-year penalty relief to employers, payroll services providers, and third-party settlement organizations (TPSOs) for tax year 2025 regarding new information reporting requirements under H.R. 1, “The One Big Beautiful Bill Act” (the Act), which was signed into law on July 4, 2025.

Additional guidance tipped occupations (including possible updates to the list of Treasury tipped occupation codes) and the exclusion for specified service trade or business will be released by the Internal Revenue Service (IRS) in the future.

Review the details here.
Tuesday, December 2, 2025/Author: ADP Admin/Number of views (4173)/Comments (0)/
Categories: Compliance Corner Federal Compliance Update
Tags: Compliance Corner12/04/25

Review Pay Frequency Laws in States Where You Have Employees Working

12/04/25

Federal law does not address how often or when wages must be paid to employees. However, most states have pay frequency laws detailing such requirements. Some states have different pay frequency requirements based on industry or employee classification (exempt or nonexempt). While certain states allow employees to be paid monthly, other states require semi-monthly, bi-weekly, or even weekly payment. We highlight some of the unique laws here including for example laws in New York, California and Rhode Island.

A general overview of pay frequency and pay timing requirements by state is available here.  
Monday, December 1, 2025/Author: ADP Admin/Number of views (3750)/Comments (0)/
Categories: Compliance Corner Federal Compliance Update
Tags: Compliance Corner12/04/25

Pension Plan Limitations for 2026 Provided by IRS

12/04/25

Pension Plan Limitations for 2026 have been released by the IRS.  The 401(k)-contribution limit is increased to $24,500. Any individual making $150,000 or more in FICA wages in 2025 must make catch-up contributions in 2026 on a post-tax basis (Roth).
Monday, December 1, 2025/Author: ADP Admin/Number of views (3696)/Comments (0)/
Categories: Compliance Corner Federal Compliance Update
Tags: Compliance Corner12/04/25

IRS Announces 2026 Benefit Plan Contribution Limits

12/04/25

On Oct.  9, 2025, the Internal Revenue Service (IRS) announced via Revenue Procedure 2025-32   the dollar limitation for 2026 on employee salary reductions for contributions to health flexible spending accounts; the monthly limitation regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass; and the maximum amount that can be excluded from an employee’s gross income for the amounts paid for qualified adoption expenses furnished pursuant to an adoption assistance program.
Monday, December 1, 2025/Author: ADP Admin/Number of views (3644)/Comments (0)/
Categories: Compliance Corner Federal Compliance Update
Tags: Compliance Corner12/04/25

IRS Announces 2026 Social Security Wage Base

11/06/25

On Oct. 24, 2025, the Social Security Administration (SSA) announced the 2026 wage base. The annual wage base limit is the maximum amount of employee wages that are subject to the social security tax for the calendar year.

The 2026 social security wage base will be $184,500, which is an increase of $8,400 from $176,100 in 2025.    
Tuesday, November 4, 2025/Author: ADP Admin/Number of views (8020)/Comments (0)/
Categories: Compliance Corner Federal Compliance Update
Tags: Compliance Corner11/06/25
12345678

Recent Updates

 

© Copyright 2016 ADP LLC. 10200 Sunset Drive | Miami, FL 33173

You are receiving this email because you are a client of ADP TotalSource. ADP, the ADP logo, and Always Designing for People are trademarks of ADP, Inc. All other marks are the property of their respective owners. Copyright © 2025 ADP, Inc.