The 2026 Payroll Forecast: What Every Business Should Know

The new year is just around the corner, and while you’re gearing up for a fresh start, it’s also time to look at what’s changing in payroll and HR compliance for 2026.
At APlus, we like to keep things simple — no jargon, no panic, just real information that helps you prepare and plan with confidence.

Here’s what you should know heading into 2026.

1. Updated Tax and Wage Limits

The IRS adjusts key payroll limits each year, and 2026 is no different. Keep an eye on:

  • Social Security wage base: Expected to increase again (final IRS confirmation arrives soon).

  • Medicare remains uncapped, but the Additional Medicare Tax still applies for high earners.

  • FICA rates: No major rate changes expected, but the thresholds continue to inch up.

  • Federal unemployment (FUTA): Still 6.0% on the first $7,000 of wages — though some states could see credit reductions if they owe federal loans.

💡 APlus Tip: Verify that your payroll system (or provider 😉) automatically updates these rates each January — and if you’re an APlus client, you can check that off your list.

2. ACA Affordability & Health Plan Thresholds

The ACA affordability percentage — which determines how much employees can be asked to pay for health coverage — has fluctuated significantly in recent years. The IRS has already announced a new, lower threshold for 2026, meaning employers will need to double-check their contribution strategies.

💡 APlus Tip: As a client, we’ll help you verify your safe harbor and affordability calculations before your 2026 renewals.

3. Retirement & Contribution Limits

Employees are saving more — and so are the limits:

  • 401(k), 403(b), and similar plan contribution limits are expected to increase slightly.

  • Catch-up contributions (for employees age 50+) are staying strong, so encourage team members to review their deferrals early in the year.

💡 APlus Tip: If APlus handles your 401(k) file integrations, you’re already set to flow the new limits automatically — no manual uploads needed.

4. Minimum Wage and State Updates

Several states and localities are increasing their minimum wage rates effective January 1, 2026 — and some mid-year.
For Missouri businesses (and several others in the region), watch for:

  • Annual state minimum wage increases tied to inflation.

  • Updates to salary thresholds for exempt employees under federal and state law.

💡 APlus Tip: If you have employees in multiple states, make sure your time and labor system is configured to handle different rates — or let our team set that up for you.

5. W-2s, 1099s, and Filing Deadlines

The IRS and SSA remain strict about January 31 filing deadlines. Employers must:

  • Furnish W-2s and 1099-NECs to employees/contractors by Jan 31.

  • File electronic copies with the IRS and SSA by the same date (no paper extensions for most businesses).

💡 APlus Tip: We handle all those filings automatically for our clients — you just verify totals before we finalize.

6. The Human Side of Payroll

Amid all the numbers, it’s worth remembering why we do this: real people.
Your employees count on accurate, timely pay and easy access to their information — and your managers need tools that make their lives simpler, too.
That’s where we shine: pairing powerful technology with real, personal support.

Let’s Make 2026 Your Smoothest Payroll Year Yet

As you prepare for the new year, now’s the perfect time to:
✅ Review your employee records and tax setups
✅ Verify benefit enrollments and deductions
✅ Confirm ACA and 401(k) settings
✅ Schedule your first payroll review of 2026

And remember — you don’t have to do it alone.  Your dedicated Client Support Specialist is just a phone call or email away.

This blog does not constitute formal HR or legal advice. Our HR Resource Center by Mineral offers further guidelines for this and many other topics. For a small additional fee you can also speak to a live HR Specialist. Contact your friendly APlus Payroll CSS for further information (including login details) or login here. Want to know how we can help your Payroll or Time & Labor process? Please contact us here. Consultation is friendly and free!