Confidently closing out your 2026 payroll year with Arcoro Payroll
This guide explains what Arcoro does for you automatically, what we need from you to keep filings clean and accurate, and the key dates from November 2026 through April 2027.
What Is New for Year End 2026?
- Overtime now appears on W-2s. Qualified overtime is reported in Box 12, Code TT for the first time. Start reviewing your overtime now. Learn what counts.
- Corrections are due Monday, December 7, 2026. See how to submit them.
- The 1099-NEC threshold rises from $600 to $2,000 for contractors paid in 2026.
- Christmas and New Year’s Day fall on Fridays. Paydays move to Thursday with earlier approval deadlines, and a January 1 payday moved to December 31 counts as 2026 wages. See Bank Holidays Which May Affect Payroll Approval Timelines.
- W-2s and 1099s publish January 11 to 15, 2027 and are due to workers by February 1. See all key dates.
What Arcoro Will Do For You
We Handle Supported Year-End Tax Filings
Arcoro prepares and files, on your behalf:
- Federal W-2 filings
- State and local W-2 filings
- 1099-NEC filings for contractors
- Annual unemployment and other required payroll returns
See the list of supported tax filings for reference. Many agencies accept filings through late February, so it’s normal and fully compliant for documents to finalize during that time.
We Generate, Print and Mail W-2s and 1099s
- Publishing W-2s and 1099-NECs electronically between January 11 and January 15, 2027
- Printing and mailing W-2s and 1099-NECs for workers without electronic consent and for all terminated employees and contractors, the week of January 18, 2027, to the resident address on file
- Postmarking forms by the federal deadline, February 1, 2027 (January 31 falls on a Sunday)
- Mailing new and corrected W-2s through April 15, 2027; after that date, print the copy available in the system and give it to the employee directly
We Generate W-2CS When Required
Once a W-2 is published, any change to it becomes a corrected W-2 (W-2C). Draft corrected forms typically appear the Monday after the change.
| Change | What happens | How to resolve |
|---|---|---|
| Wage or tax corrections | W-2C created automatically and filed with agencies | Contact Support to submit the payroll correction |
| SSN update | Federal W-2C created automatically; state and local filings need a request | Update the SSN in Arcoro, then contact Support for state and local updates |
| Name change | No W-2C needed | Update the name in Arcoro; contact Support only if the employee requests a W-2C |
| Address change | No W-2C needed | Update the resident address in Arcoro so any mailed or resent form reaches the employee |
| FEIN change | May require two sets of amendments and take longer | Contact Support with the previous and new FEIN |
| Prior-year wages added for a new worker | New W-2 created, not a W-2C | Contact Support; add the worker and wages as historical pay |
| 1099-NEC changes | Not yet automated | Contact Support with the contractor and corrected amounts |
We Publish Your Company’s Tax Documents
Employer filing documents appear in two waves: Monday, January 11, 2027 and Monday, February 8, 2027 (the second Monday of each month). Final filed versions replace drafts after agency acceptance. To find and download them, see Understanding the Tax Filing Page of Payroll.
Key Dates and What to Expect
| When | What happens | Owner |
|---|---|---|
| November 2026 | Review W-2 previews and reconcile to your payroll summary (see Reviewing W2s in Arcoro Payroll) | Customer |
| December 7, 2026 | Corrections cutoff for original year-end filings | Customer |
| December 31, 2026 | Last pay date that counts toward 2026 W-2s and 1099s | Customer |
| December 31, 2026 | Last day to review your W-2 and 1099 delivery method | Customer |
| January 1, 2027 | New wage bases, benefit limits take effect | Arcoro |
| January 6, 2027 | Last day to approve corrections for original filings | Customer |
| January 11, 2027 | First wave of company tax documents published | Arcoro |
| January 11 to 15, 2027 | W-2s and 1099-NECs published electronically | Arcoro |
| Week of January 18, 2027 | Paper W-2s and 1099s mailed | Arcoro |
| February 1, 2027 | Deadline to furnish W-2s and 1099s; amendment processing begins | Arcoro |
| February 8, 2027 | Second wave of company tax documents published | Arcoro |
| March 1, 2027 | Many state and local annual filings due (February 28 falls on a Sunday) | Arcoro |
| April 15, 2027 | Last day Arcoro mails new and corrected W-2s | Arcoro |
What You Need to Do
Arcoro handles filing and form delivery. Your part is making sure the data is right and approving payroll on time. Here is everything, in order.
Before Year End: The Checklist
Work through the Arcoro Year-End Payroll Checklist 2026 in November and early December. It covers verifying company, employee and contractor information; accounting for every payroll and payment; recording special items; reviewing W-2 previews; holiday pay dates; W-2 and 1099 delivery; and planning for 2027.
Beyond the Checklist: Actions By Date
| When | What to do | Details |
|---|---|---|
| November 2026 | Review overtime and list any that doesn’t qualify | Overtime on W-2s |
| By December 7, 2026 | Submit corrections to Arcoro Support | Find and submit corrections early |
| By December 7, 2026 | Record third-party sick pay, group term life and other special items | Record special items |
| Thanksgiving, Christmas and New Year’s weeks | Approve payroll early; check the Pay Schedule report for shifted pay dates | Bank Holidays |
| By December 31, 2026 | Run final 2026 payrolls, bonuses and employer HSA or 401(k) contributions | Key dates |
| By December 31, 2026 | Review your W-2 and 1099 delivery method; remind workers to opt in to paperless | Electronic W-2 and 1099 delivery |
| By January 6, 2027 | Approve any corrections | Find and submit corrections early |
| January 11 to 15, 2027 | Review published W-2s and 1099s; follow up on anything that looks wrong | If something does not look right |
| January 2027 | Enter new SUI rates, remind employees about W-4s, confirm 2027 benefits, plan cash for the first tax debit | Updates and reminders for 2027 |
Find and Submit Corrections Early
Submit corrections to Arcoro Support by Monday, December 7, 2026 so they are completed before December 31 and reflected in original filings. Corrections must be approved by Wednesday, January 6, 2027. Submit a support ticket for help with any correction.
Missed the cutoff? That’s okay. Payroll can always be corrected, and we update affected filings starting in February 2027.
| Area | Check for |
|---|---|
| Wages | Missing or misclassified pay |
| Taxes | Wrong or missing withholding |
| Benefits | Taxable benefits not reported |
| Deductions | Pre-tax vs. post-tax setup |
| Multi-state or local | Wages allocated to the correct state or locality |
| Voids | Checks voided but not recorded |
| Adjustments | Entries still to be made |
Record Special Items
These payments often happen outside a regular payroll run. Record them in Arcoro by December 7, 2026 so they are included on your 2026 W-2s. The items below are common examples, not a complete list; record any other pay or taxable benefits provided outside your regular payroll too.
Most special items are recorded as non-hourly earnings: a flat dollar amount with no hours attached. See Understanding Non-Hourly Earnings in Arcoro Payroll.
Record Third-Party Sick Pay
If an insurance provider or the state paid disability benefits and the carrier won’t issue the W-2 for them, send Arcoro the total taxable benefits, taxes withheld and the carrier notice. Benefits are taxable in proportion to the premium your company paid (for example, 60% employer-paid means 60% taxable). If unsure, ask your carrier whether it files W-2s for these payments.
Record Group Term Life (GTL) Over $50,000
If GTL isn’t tracked per payroll, record the imputed income amount in Arcoro for accurate reporting.
Overtime on W-2s (New for 2026)
Under the One Big Beautiful Bill Act, employees may deduct qualified overtime on their personal returns. Tax year 2026 is the first year these amounts are reported on the W-2, and the IRS has changed the form to carry them.
| W-2 box | What it reports |
|---|---|
| Box 12, Code TT | Total qualified overtime compensation |
Qualified Overtime
Qualified overtime is only the premium portion required by the federal Fair Labor Standards Act (FLSA): the “half” in time-and-a-half, calculated each workweek. Overtime paid for any other reason does not qualify, even when you’re required to pay it.
| Qualifies | Does not qualify |
|---|---|
| The half-time premium for hours over 40 in a workweek, paid to non-exempt employees | The straight-time portion of overtime pay |
| Daily, seventh-day or double-time premiums required only by state law | |
| Overtime paid only because of a union agreement or company policy | |
| Overtime paid to exempt salaried staff, such as salaried foremen or supervisors | |
| Overtime paid to owners with a 20% or greater stake who are actively involved in management |
Example: an employee earning $20 an hour is paid $30 for each overtime hour. Only the $10 premium is qualified overtime.
By default, Arcoro Payroll reports all overtime earnings in Box 12, Code TT. If some of your overtime doesn’t qualify, that amount may be overstated, and an error found after W-2s publish requires a corrected W-2.
Start Your Overtime Review Now
- Pull a year-to-date earnings report for overtime pay types by employee (Reporting for Payroll)
- Flag overtime paid for reasons other than the federal 40-hour rule: union agreements, state daily or seventh-day rules, double time, or company policy
- Flag overtime paid to exempt salaried staff, such as foremen or supervisors, and to owners with a 20% or greater stake
- Once W-2 previews are available in November, compare Box 12, Code TT to what you expect(Reviewing W2s in Arcoro Payroll)
- Keep a list of affected employees and earning types
Arcoro is finalizing how non-qualified overtime will be adjusted before W-2s publish. Complete your review now and keep your list of affected employees and earning types ready. We’ll share how to submit adjustments as soon as the process is available.
What to Tell Employees
- It’s a deduction, not tax-free pay. Overtime is still taxable income and still subject to federal withholding. Employees who want less withheld can update their 2026 Form W-4.
- The W-2 shows the full amount. Box 12, Code TT reports all qualified overtime paid, even above what the employee can deduct. The deduction is capped at $12,500 ($25,000 for joint filers) and phases out at higher incomes.
- Employees can generally deduct only what’s reported in Box 12, Code TT.
- Questions about their own deduction are best answered by a tax professional.
For full IRS guidance, including workweek and regular-rate calculations, see IRS Fact Sheet FS-2026-13: Qualified overtime compensation FAQs.
Electronic W-2 and 1099 delivery
Federal law requires annual tax forms to be mailed unless the worker actively consents to electronic-only delivery. Electronic forms arrive faster, are more secure, and can’t be lost in the mail or sent to an old address, so it pays to collect consent before year end.
How Employees and Contractors Opt-In
- New hires: Workers choose paperless delivery of their W-2 (or 1099 for contractors) by checking the paperless delivery box.
- Current workers: Workers who skipped the box can opt in any time, but should do so by December 31, 2026 for paperless delivery of their 2026 forms. Ask them to confirm their delivery preference and resident address now.
- Consent stays in place for future years until the worker changes it.
- Without consent, the worker receives a mailed copy and can still view the electronic version in the Documents area.
- Terminated workers always receive a mailed copy, even if they opted in, because they may lose portal access.
Employers: Review Your Company Delivery Method
Your company-level setting controls how forms are delivered, and it overrides individual worker choices. For example, if your company is set to Manual, terminated workers will not receive a mailed W-2. Review it by December 31, 2026, since changes made after that may not apply until the next tax year.
- Go to General Information in Payroll.
- Scroll to the W-2 Delivery Method and 1099 Delivery Method sections.
- Choose an option and click Save.
| Delivery method | How forms are delivered |
|---|---|
| Print & Mail to Worker | Printed and mailed individually to each worker’s resident address |
| Default | Workers who opted in access forms electronically; others and terminated employees receive a mailed copy |
| Manual | No printing or mailing; you download and distribute every form yourself |
- Company W-2 and 1099 delivery methods reviewed and saved
- Workers reminded to opt in to paperless delivery and confirm their resident address
The delivery method affects only how forms are delivered, not how they are filed. Learn more in W-2 and 1099 Generation and Delivery Options for Payroll.
If Something Does Not Look Right
- Compare the form to your payroll records. W-2s show taxable wages, not gross pay, so subtract pre-tax benefits first.
- Check that retirement, HSA and other benefit amounts appear on the employee’s pay stubs. If they aren’t on a 2026 pay stub, they won’t be on the W-2.
- Look for historical payroll imports, misreported benefits or deductions, or wages taxed in the wrong state.
- Contact Arcoro Support if something still appears incorrect.
Updates and Reminders for the Start of 2027
- State unemployment insurance (SUI) rates. Many agencies send new unemployment rates for the coming year. If your rate changes, the signatory for tax documents updates it in the payroll system. See How to Update Your Company’s SUI Rate for Payroll.
- Federal withholding window. The start of the new year is the best time for employees to update their W-4.
- Wage bases restart. Social Security withholding restarts and applies to a higher amount in 2027: the wage base rises to $192,300, up from $184,500 in 2026 (Bloomberg Tax). Federal unemployment ($7,000 wage base) and state unemployment also restart, which can mean a larger cash requirement on the first pay run.
- Benefit limits. Arcoro automatically updates annual limits in the system. Remind employees to adjust per-pay-period amounts if they want to reach new maximums.
- Roth catch-up for high earners. Employees age 50 or older whose 2026 FICA wages from your company (W-2 Box 3) exceed the IRS threshold must make 2027 catch-up contributions as Roth. The threshold was $150,000 for 2026 and is adjusted each year; the IRS typically announces the new figure in November. Before your first 2027 payroll, identify affected employees and turn on the Roth catch-up setting on each one’s employee profile in Arcoro Payroll. Coordinate with your retirement plan provider, too: employees in a plan without a Roth option can’t make catch-up contributions.
Review Benefits Setup for 2027
Confirm deductions, contribution amounts and effective dates for the new year. See Benefit Deductions for Payroll and Post-Tax Deductions for Payroll.
If you sync benefits from Arcoro to a separate payroll system, future-dated changes (effective January 1, 2027) don’t sync until that date arrives. Export upcoming-year changes and load them before your first 2027 payroll, then reconcile once the sync catches up.
FAQs
- Why do W-2s and 1099s have to be mailed?
Federal law requires annual tax forms to be mailed unless the worker consents to electronic-only delivery. All terminated workers must receive paper forms to ensure access.
- Can workers download an electronic copy even if they receive a paper copy?
Yes. Electronic versions are available in the Employee’s Payroll Portal, once published, between January 11 and January 15, 2027.
- Which year do wages from my last payroll count toward?
The pay date decides. A payroll for the period December 20, 2026 to January 2, 2027 with a pay date of January 8, 2027 counts toward 2027.
- A W-2 came back from the Postal Service. What should we do?
Don’t open it. Keep it on file with the original postmark as proof of attempted delivery. Confirm the address, then resend it or hand it to the employee.
- Can we send electronic-only W-2s to employees who haven’t consented?
No. Employees must affirmatively consent to electronic delivery. Without consent, they receive a mailed copy and can still view the electronic version.
- A worker was both a contractor and an employee this year. What will they receive?
Both a 1099-NEC and a W-2, based on how each payment was classified.
- Who is responsible for W-2 accuracy?
The employer is ultimately responsible. Arcoro calculates each box from the payroll information you provide, which is why reviewing previews and submitting corrections early matters.