On January 9, 2026, the Internal Revenue Service (IRS) released the final version of the 2026 Form W-2 that incorporates changes as a result of the One Big Beautiful Bill Act (OBBBA). Employers are encouraged to work with their payroll providers and/or payroll departments to ensure the 2026 Form W-2 can be completed for this calendar year.

As previously shared, under the OBBBA, employers are required to report the total amount of qualified tips, qualified tipped position, and qualified overtime for applicable employees, however, for the 2025 tax year, the IRS confirmed that the Form W-2 will not be changed.

Some of the notable changes in the 2026 Form W-2 are:

• Box 12 to report:
  • “TA” for contributions to an employee’s Trump Account.
  • “TP” for qualified tips; and
  • “TT” for qualified overtime.
• Box 14b to report up to two qualifying tipped occupations.
  • Reporting code “000” alone means that cash tips are not qualified tips.

Additional information can be found on the IRS One Big Beautiful Bill Act of 2025 provisions website. HEC will continue to monitor guidance and provide updates as appropriate.

Please note the information provided is for informational purposes only and may not reflect the most current regulatory developments.  We strive to keep our materials up to date, but there may be occasions when information becomes outdated.  Users are encouraged to verify the applicability of the content before relying on it for decision-making.  If you have any questions or concerns regarding the accuracy or relevance of the information, please contact us directly for assistance.