Morning: Small Business Tax Tips (New Haven): 2026 Form W-2 Adds Box 12 Codes TA, TP and TT — New Haven Employers Face a February 1, 2027 Deadline

New Haven, CT – Jose's Tax Service – November 7, 2026
Today's 8:00 a.m. installment of the Small Business Tax Tips series.

The 2026 Form W-2 introduces three Box 12 codes: TA, TP and TT. Employers must also use the new Box 14b when reporting tips under code TP. And the correct filing and furnishing deadline is February 1, 2027 — not January 31. January 31 falls on a Sunday.

Use this employer-focused guide to prepare accurate 2026 wage statements and deliver them on time. The primary source is the 2026 General Instructions for Forms W-2 and W-3.

Use the new Box 12 codes!

Report the applicable amount in Box 12 using its designated code. These entries communicate specific information; they do not, by themselves, change the underlying tax treatment of wages.

• Code TA: Employer contributions to Trump accounts. Beginning July 4, 2026, an employer may contribute up to $2,500 per year toward the general $5,000 annual contribution limit for a Trump account belonging to an employee or the employee’s dependent. The contribution is excluded from the employee’s gross income when paid under a qualifying section 128 Trump account contribution program. Review IRS Publication 15-A, Employer’s Supplemental Tax Guide for program requirements.
• Code TP: Cash tips reported to the employer. Report the total amount of cash tips the employee reported. Tips remain generally subject to federal income tax withholding and both the employer and employee shares of Social Security and Medicare taxes when the employee receives $20 or more in tips per month. A mandatory service charge is not a qualified tip.
• Code TT, qualified overtime compensation. Report only the qualified overtime premium, the “half” portion of time-and-a-half pay, not the full overtime payment. For tax years beginning after 2024 and ending before 2029, P.L. 119-21 allows an eligible employee to deduct up to $12,500, or $25,000 for married taxpayers filing jointly, subject to applicable requirements. Overtime remains subject to withholding and both shares of Social Security and Medicare taxes. See the Department of Labor’s overtime guidance for FLSA context.

Do not treat these reporting codes as tax exemptions. Code TP tips and code TT overtime generally remain subject to payroll withholding and applicable employment taxes even when the employee may qualify for an individual income tax deduction.

Complete Box 14b when reporting tips!

The 2026 Form W-2 separates the former Box 14 into Box 14a, Other and new Box 14b, Treasury Tipped Occupation Code(s). If you report cash tips in Box 12 using code TP, enter the corresponding occupation code or codes in Box 14b.

Follow these instructions:

1. Enter up to two Treasury Tipped Occupation Codes based on the occupations in which the tips were received.
2. If tips came from three or more occupations, enter any two codes from those occupations.
3. If the employee received tips in a nonqualifying occupation, enter “000” as one of the occupation codes.

Check the official IRS list of occupations that customarily and regularly received tips on or before December 31, 2024. That list determines which occupations may qualify for the P.L. 119-21 deduction of up to $25,000. Eligibility depends on the applicable statutory rules.

Box 9 is smaller on the revised form to make room for an additional Box 14a entry. Use the current-year form for 2026 reporting. The Form W-2c revision dated 1-2026 also reflects the updated design for corrections.

File and furnish by February 1!

The 2026 Forms W-2 and transmittal Form W-3 are due to the Social Security Administration (SSA) February 1, 2027, whether filed on paper or electronically. The employee deadline for Copies B, C and 2 is also February 1, 2027.

For employee statements, properly addressed mail sent on or before the due date satisfies the furnishing requirement. If an employee’s employment ends before December 31, 2026, furnish the statement after employment ends, but no later than February 1, 2027.

Keep filing and furnishing deadlines separate in your records. Form 8809, Application for Extension of Time To File Information Returns, allows only one 30-day extension for filing with the SSA. An extension is not automatic and is granted only in extraordinary circumstances or catastrophe. Even if approved, it does not extend the employee furnishing deadline.

For more time to furnish employee copies, submit the new Form 15397, Application for Extension of Time to Furnish Recipient Statements, on or before February 1, 2027. Approval is not automatic. An approved extension is generally limited to 15 days, unless the need for up to 30 days is clearly shown.

Select the correct filing method!

The SSA’s Business Services Online (BSO) service allows employers to create and submit wage reports. BSO automatically generates Form W-3 from the Forms W-2 entered.

• Use BSO’s online creation option for 50 or fewer Forms W-2 or 25 or fewer Forms W-2c.
• For more than 50 Forms W-2 or more than 25 Forms W-2c, use the BSO file-upload option and follow the SSA EFW2 and EFW2C specifications.
• E-file when you must file at least 10 information returns in total. Count Forms W-2 together with applicable Forms 1042-S, 1094/1095, 1098, 1099, 3921, 3922, 5498, 8027, W-2G and other listed information returns. Corrected returns are counted separately.
• If you qualify for a waiver, request it using Form 8508, Application for a Waiver from Electronic Filing of Information Returns.
• If the original Form W-2 was e-filed, e-file its Form W-2c correction. Do not also submit paper forms for returns filed electronically.

Verify the amounts and limits!

Before transmitting the wage statements, check that the employee records, payroll records and Form W-3 totals agree. Differences between Forms W-2, W-3 and applicable Forms 941, 943 or 944 may lead to IRS or SSA contact. Retain your reconciliation records.

Review these 2026 Form W-2 figures:

• The Social Security wage base is $184,500. The total of Boxes 3 and 7 cannot exceed this limit.
• Medicare has no wage base limit. Employers must withhold the 0.9% Additional Medicare Tax on an employee’s wages above $200,000.
• The 2026 health flexible spending arrangement (FSA) salary-reduction limit is $3,400.

The IRS permits employers to complete and print recipient Copies 1, B, C, 2 and D using its online fillable copies. Copy A printed from IRS.gov cannot be filed on paper with the SSA. Use an authorized filing method for Copy A.

If an employee copy cannot be delivered, retain it for four years. You may instead produce it electronically through April 15 of the fourth year after the year at issue. For disaster-related relief, review IRS.gov/DisasterTaxRelief.

Avoid preventable penalties!

For Forms W-2 due after December 31, 2026, penalties under Internal Revenue Code sections 6721 and 6722 have increased for inflation. The following amounts apply per form to filing and furnishing failures; filing and furnishing penalties may apply separately.

For these limits, a small business generally has average annual gross receipts of $5 million or less over the three most recent tax years. Intentional disregard carries a penalty of at least $690 per form, with no maximum.

Warning: Late, incomplete or incorrect Forms W-2 can lead to penalties, delay wage-report processing and require corrected statements. A payroll provider does not remove the employer’s responsibility for accurate, timely filing and furnishing. Confirm the filing status and retain proof of submission and delivery.

Complete this year-end checklist!

• Identify employees whose 2026 wages require Form W-2 reporting.
• Review tip and overtime records; determine whether codes TP or TT apply.
• Report qualifying employer Trump account contributions with code TA.
• Match Box 12 code TP entries with the correct Box 14b occupation code or codes.
• Check the Social Security wage base, Medicare wages and Additional Medicare Tax withholding.
• Reconcile Forms W-2 and W-3 to payroll records and applicable employment tax filings.
• Confirm whether the 10-return e-filing threshold applies and choose the correct BSO method.
• File with the SSA and furnish employee Copies B, C and 2 by February 1, 2027.

For additional small-business guidance, visit our Small Business Learning Center. To review your employer filing needs with our team, schedule a tax appointment.

Jose's Tax Service LLC.
162 Portsea St.
New Haven, CT 06519
475-254-9373
jmorales@josestaxservice.com

This article provides general information and is not individualized tax, legal or accounting advice.

Category: Tax Planning | Tags: small business tax, New Haven business, deductions, tax strategy