2026 W-2 Changes for NJ Employers: New Codes TP, TT, and TA, Box 14b, and the Early-2027 Due Dates

At a glance

The 2026 Form W-2 is the first one built around the One Big Beautiful Bill Act’s tip and overtime rules. Here is the short version for New Jersey employers.

• Three new box 12 codes: TP (cash tips), TT (qualified overtime), and TA (employer Trump account contributions).
• Box 14 is split in two. Box 14a keeps the old “Other” items. New box 14b holds the Treasury Tipped Occupation Code.
• The dependent care exclusion rose to $7,500 ($3,750 married filing separately). Box 10 still shows all dependent care benefits.
• The 2025 transition period is over. IRS penalty relief for tip and overtime reporting covered tax year 2025 only.
• New Jersey does not follow the federal tip and overtime deductions. The NJ sources checked do not mention the new codes.
• Key dates: federal W-2s are due February 1, 2027. Filing the Q4 NJ-927 and WR-30 by January 29, 2027 meets both published NJ dates. Filing the NJ-W-3 by February 15, 2027 does the same.

Every figure below was checked against IRS, federal, and New Jersey government sources on October 5, 2026. Each one is linked.

What is new on the 2026 Form W-2

The One Big Beautiful Bill Act (Public Law 119-21) created federal deductions for qualified tips and qualified overtime. It also gave employers new reporting duties. The IRS built them into the 2026 W-2 instructions.

Box 12, code TP: cash tips

Code TP reports the total cash tips reported to the employer. Tips of $20 or more in a month are still subject to federal income tax withholding. Both shares of Social Security and Medicare tax also apply.

Qualified tips are voluntary cash or charged tips, including tips received through tip-sharing. Mandatory service charges added to the bill are not qualified tips (IRS W-2 instructions). Our no tax on tips guide for NJ restaurants covers the employee side of the deduction.

Box 14b: the Treasury Tipped Occupation Code

When box 12 shows code TP, box 14b must show the employee’s Treasury Tipped Occupation Code. The IRS rules for the box:

• Enter up to two codes, based on the occupations in which tips were received.
• If tips came from three or more occupations, enter the codes for any two of them.
• If any tips came from a nonqualifying occupation, one of the codes must be “000.”

The codes come from the IRS list of occupations that received tips. A few examples from that list:

• Restaurants and bars: 101 (Bartenders) and 102 (Wait staff).
• Salons and spas: 601 (Skincare specialists), 603 (Barbers, hairdressers, hairstylists, and cosmetologists), and 605 (Manicurists and pedicurists).
• Home-service trades: 403 (Home electricians) and 404 (Home plumbers).

Box 12, code TT: qualified overtime

Code TT reports the total qualified overtime compensation paid. The IRS defines it narrowly. Only the “half” portion of “time-and-a-half” pay is reported with code TT (IRS W-2 instructions).

IRS Fact Sheet FS-2026-13 (August 2026) adds detail for employers:

• The full qualified amount goes in box 12. That holds even when it exceeds the employee’s deduction limit of $12,500 ($25,000 on a joint return).
• Only the premium the Fair Labor Standards Act (FLSA) requires counts. If an employer pays more, such as double time, only the required premium is qualified.
• The weekly math for most employees: FLSA hours over 40 × one-half × the FLSA regular rate of pay.
• Errors need a Form W-2c. An employer that finds a code TT error files Form W-2c with the SSA. It also gives the employee a copy.

Which employees are eligible for FLSA overtime is a labor-law question. This post covers only the tax reporting.

Box 12, code TA: Trump account contributions

Public Law 119-21 created Trump accounts, a new type of traditional IRA for a child under 18. Beginning July 4, 2026, employers may contribute up to $2,500 a year. The money goes to the Trump account of an employee or an employee’s dependent.

The amount is excluded from the employee’s income when paid under a Trump account contribution program. In general, the account’s annual limit is $5,000, including employer money. Code TA reports these employer contributions (IRS W-2 instructions).

Box 10: a higher dependent care limit

Public Law 119-21 raised the dependent care assistance exclusion from $5,000 to $7,500. The limit for married filing separately rose from $2,500 to $3,750 (P.L. 119-21, section 70404). The change applies to tax years beginning after December 31, 2025.

Box 10 shows all dependent care benefits: the tax-free part and any amount above the limit. Any amount over the exclusion also goes in boxes 1, 3, and 5 (IRS Publication 15-B (2026)).

One wrinkle for payroll staff. The box 10 paragraph in the 2026 W-2 instructions, as posted on October 5, 2026, still refers to “the $5,000 exclusion.” The statute and Publication 15-B (2026) both say $7,500.

Other changes for tax year 2026

• A higher threshold for some W-2s. For wages paid after 2025, the reporting threshold is $2,000, up from $600. It applies when no federal income, Social Security, or Medicare tax was withheld. The threshold adjusts for inflation after 2026.
• Higher penalties. These amounts apply to filings due after December 31, 2026 (IRS W-2 instructions):
  • $60 per Form W-2 when the correct form is filed within 30 days after the due date.
  • $130 per Form W-2 when the correct form is filed after 30 days but by August 1.
  • $340 per Form W-2 when it is filed after August 1, not corrected, or not filed.
• What triggers a penalty. The list includes leaving required information off the form. A separate penalty for employee copies uses the same amounts.
• State paid family and medical leave. The 2026 instructions say employee contributions and employer voluntary payments to a state program count as wages on Form W-2. IRS Notice 2026-6 did not extend 2025 relief for an employer that voluntarily pays an employee’s required contribution. It expects those amounts to be reported as wages on the 2026 W-2. Neither source names New Jersey’s Family Leave Insurance or Temporary Disability Insurance programs.

Why 2026 is the year this matters

For tax year 2025, the IRS gave employers penalty relief. Employers faced no penalties for not separately reporting cash tips, tip occupations, or qualified overtime (IRS news release IR-2025-110). That relief was limited to returns and statements for tax year 2025.

For 2026, the new boxes are required. FS-2026-13 adds a point that matters to staff. For tax years after 2025, employees may not count qualified overtime above what box 12, code TT shows.

New Jersey: what changes and what does not

New Jersey does not follow the federal deductions. The NJ Division of Taxation addressed the federal deductions for overtime, tips, and senior citizens. It says they “do not affect” a New Jersey income tax return. NJ’s Gross Income Tax has its own income categories. It is not computed from federal adjusted gross income (NJ Division of Taxation, updated December 1, 2025).

NJ box 16 instructions. NJ’s withholding guide lists “State wages, tips, and compensation paid” for box 16. The same list includes “IRC section 129 dependent care benefits” (NJ-WT, September 2025). The guide does not mention the new $7,500 federal limit.

The new codes. As of October 5, 2026, the NJ sources checked do not mention codes TP, TT, or TA, or box 14b. Those sources are:

• NJ-WT, the employer withholding guide (September 2025 edition).
• NJ-EFW2, the W-2 e-file specification (08/2026).
• The Division’s OBBBA page (updated December 1, 2025).

How New Jersey treats code TA amounts in box 16 is not stated in those sources.

Early-2027 filing dates for 2026 wages

Federal W-2s: February 1, 2027

The 2026 W-2 instructions set February 1, 2027 for both the SSA filing and the employee copies. That date applies to paper and electronic filing. January 31, 2027 falls on a Sunday. IRS Publication 15 (2026) covers that case. A filing or furnishing date on a weekend or legal holiday moves to the next business day.

Two more federal points:

• E-filing. An employer filing at least 10 information returns in total, counting Forms W-2, must e-file its W-2s.
• Extensions. An extension to file with the SSA is not automatic. It takes Form 8809, and the IRS grants it only in extraordinary circumstances or catastrophe.

NJ-927 and WR-30: filing by Friday, January 29, 2027 meets both rules

The fourth-quarter NJ-927 and WR-30 are due January 30. In 2027 that is a Saturday. Two NJ agencies describe the weekend differently:

• NJ’s Department of Labor says no extension is granted for a weekend or holiday due date (NJ DOL).
• The Division of Taxation’s NJ-WT says the NJ-927 is due the next business day (NJ-WT).

Filing by Friday, January 29, 2027 meets both.

NJ-W-3: filing by February 15, 2027 meets every published date

New Jersey’s rule is February 15. If that date is a weekend or holiday, it moves to the next business day (NJ Division of Taxation). February 15, 2027 is a Monday and a federal holiday, Washington’s Birthday (5 U.S.C. 6103(a); OPM 2027 schedule). The NJ sources checked do not say whether that day counts as a holiday for this rule.

New Jersey’s 2026 W-2 e-file guide prints a different date. It says the entire package “is due by February 17, 2027” (NJ-EFW2, 08/2026). Filing by February 15, 2027 meets all of these dates.

Two more NJ points:

• Electronic only. New Jersey requires electronic filing of the NJ-W-3 and W-2s. It does not accept paper filings by mail.
• Employee copies. NJ-WT lists February 15 for giving employees their W-2. The federal date, February 1, 2027, is earlier.

Our tax calendar lists the full year of federal and NJ deadlines.

Year-end checklist for the new boxes

Most of the work happens in the payroll system before December 31. These are items payroll teams commonly confirm:

• Tips and service charges kept in separate pay items. The IRS says mandatory service charges are not qualified tips.
• An occupation code on file for each tipped employee. Box 14b needs a code whenever box 12 shows code TP.
• The overtime premium tracked on its own. Code TT takes only the required premium, not the straight-time pay for overtime hours.
• Trump account contributions mapped to code TA, for employers that offer them.
• Dependent care FSA elections compared with the $7,500 limit.
• New Forms W-4. Employees may submit a new W-4 that accounts for the overtime deduction. Without one, the IRS says withholding may not be reduced for it.
• The payroll provider’s 2026 W-2 output. It needs codes TP, TT, and TA and box 14b where they apply.

Contractors are a separate track. Our guide to the 2026 Form 1099-NEC threshold covers the new $2,000 rule.

How ProAxis helps

The new boxes depend on payroll data captured during the year. Our payroll services for NJ employers cover NJ payroll tax filings, including the NJ-927 and WR-30, and year-end W-2 preparation. Which boxes apply depends on the payroll: tipped staff, FLSA overtime, a Trump account program, or a dependent care FSA. A review before December 31 can sort out which ones apply to yours.

2026 W-2 FAQ for NJ employers

What are the new box 12 codes on the 2026 Form W-2?

Three codes are new for 2026. Code TP reports the total cash tips reported to the employer. Code TT reports the total qualified overtime compensation. Code TA reports employer contributions to a Trump account under a section 128 program. A new box 14b holds the Treasury Tipped Occupation Code for any employee with code TP tips. Source: IRS, General Instructions for Forms W-2 and W-3 (2026).

What amount goes in box 12 with code TT?

Only the overtime premium the Fair Labor Standards Act requires. The IRS says only the ‘half’ portion of ‘time-and-a-half’ pay is reported with code TT. The full qualified amount paid goes in box 12, even above the $12,500 deduction limit ($25,000 on a joint return). If an employer pays more than the FLSA requires, such as double time, only the required premium counts. Source: IRS, General Instructions for Forms W-2 and W-3 (2026) and Fact Sheet FS-2026-13 (August 2026).

Does New Jersey follow the federal tips and overtime deductions?

No. The NJ Division of Taxation addressed the federal deductions for overtime, tips, and senior citizens. It says they do not affect a New Jersey income tax return. New Jersey’s Gross Income Tax has its own income categories. It is not computed from federal adjusted gross income. Source: NJ Division of Taxation, One Big Beautiful Bill Act (OBBBA) and the New Jersey Gross Income Tax (last updated December 1, 2025).

When are 2026 Forms W-2 due?

February 1, 2027, for both the filing with the Social Security Administration and the employee copies. The date applies to paper and electronic filing. January 31, 2027 falls on a Sunday. IRS Publication 15 moves a weekend or legal holiday filing or furnishing date to the next business day. Source: IRS, General Instructions for Forms W-2 and W-3 (2026) and Publication 15 (2026).

When is the NJ-W-3 due for 2026 wages?

New Jersey’s rule is February 15, or the next business day if that date is a weekend or holiday. February 15, 2027 is a Monday and a federal holiday, Washington’s Birthday. New Jersey’s 2026 W-2 e-file guide prints a different date, February 17, 2027. Filing by February 15, 2027 meets every one of these dates. Source: NJ Division of Taxation, NJ-WT (September 2025) and NJ-EFW2 (08/2026). Holiday: 5 U.S.C. 6103(a) and the OPM 2027 federal holiday schedule.

Did the dependent care limit for box 10 change in 2026?

The exclusion did. Public Law 119-21 raised it from $5,000 to $7,500, or from $2,500 to $3,750 for married filing separately. The change applies to tax years beginning after December 31, 2025. Box 10 still reports all dependent care benefits, including any amount over the limit. Amounts over the limit also go in boxes 1, 3, and 5. Source: Public Law 119-21, section 70404, and IRS Publication 15-B (2026).

Sources

All sources were accessed October 5, 2026.

• IRS, General Instructions for Forms W-2 and W-3 (2026). Covers codes TA, TP, and TT, boxes 14a and 14b, and the $2,000 threshold. Also the Trump account limits, the $20 tip rule, due dates, e-file and extension rules, penalties, and the state PFML note.
• IRS, Fact Sheet FS-2026-13, Updates to questions and answers about the new deduction for qualified overtime compensation (August 2026). Code TT reporting, the $12,500 and $25,000 limits, the weekly formula, double time, Form W-2c, and Form W-4.
• Public Law 119-21, sections 70201 (qualified tips), 70202 (qualified overtime), 70204 (Trump accounts), and 70404 (dependent care assistance).
• IRS, Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits. The $7,500 and $3,750 dependent care limits and box 10 reporting.
• IRS, Publication 15 (2026), Employer’s Tax Guide. The weekend and legal holiday rule and the Form W-4 withholding note.
• IRS, news release IR-2025-110 (November 5, 2025). Penalty relief for tax year 2025 only.
• IRS, Notice 2026-6. State paid family and medical leave transition period for 2026.
• IRS, Occupations that customarily and regularly received tips on or before Dec. 31, 2024. Treasury Tipped Occupation Codes.
• NJ Division of Taxation, One Big Beautiful Bill Act (OBBBA) and the New Jersey Gross Income Tax (last updated December 1, 2025).
• NJ Division of Taxation, NJ-WT, New Jersey Income Tax Withholding Instructions (September 2025). Box 16 items, the NJ-927 due date rule, the NJ-W-3 due date rule, and employee W-2 copies.
• NJ Division of Taxation, Reconciling Tax Withheld With Form NJ-W-3 (last updated May 7, 2025). The February 15 rule and mandatory electronic filing.
• NJ Division of Taxation, NJ-EFW2, Specifications for Reporting W-2 Information via Electronic File (08/2026). The February 17, 2027 date.
• NJ Department of Labor and Workforce Development, Employer Contribution Rate Information. The NJ-927 and WR-30 weekend rule.
• 5 U.S.C. 6103(a), Holidays (via govinfo). Washington’s Birthday is the third Monday in February.
• U.S. Office of Personnel Management, Federal Holidays. Washington’s Birthday, February 15, 2027.

This article is general information for New Jersey employers. It is not tax, accounting, or legal advice and does not create a CPA-client relationship. Figures and dates were checked on October 5, 2026 against the sources listed above. Confirm your situation with a licensed CPA before you act.