July 2026

New Reality Avoid 2025 assumptions. Use 2026 rules. "One Big Beautiful Bill" (OBBB) passed. Working Families Tax Cuts active. Most TCJA provisions permanent. Tax cliff removed. Stability established. Verify compliance immediately. Review 2026 Checklist QBI Permanent Section 199A remains. 20% deduction secured. Small businesses keep relief. Average $4,600 saved. Pass-through entities eligible. Sole proprietors included. […]

Wrong Thresholds Stop using the $600 rule for 2026 payments. The One Big Beautiful Bill Act (OBBBA) raised thresholds. 2026 Payment Rules: Threshold: $2,000 per payee. Forms: 1099-NEC and 1099-MISC. Timeline: Payments made on or after January 1, 2026. Reporting: Due early 2027. Past Year Rules: Threshold: $600. Timeline: Payments made in 2025 or earlier.

Update Rates Social Security rate: 6.2%. Medicare rate: 1.45%. Wage base: $184,500. Stop withholding Social Security after $184,500. Continue Medicare withholding on all earnings. Apply 0.9% Additional Medicare Tax over $200,000. Verify software calculation accuracy. Audit employee earnings history. Adjust year-to-date totals. Confirm employer match. Submit Form 941 quarterly. Manage W-2s Use Box 12 codes.