Federal Publication 15, Employer Tax Guide

Are you an employer wondering what you need to do to stay compliant with IRS rules in 2026? The IRS Publication 15 (2026), also known as Circular E, is your go-to resource. Here's a straightforward overview to help you navigate your employer tax responsibilities smoothly.

Identifying Employees and Compensation

Determine which workers are employees and understand what constitutes wages, tips, and additional compensation. Use this information for accurate withholding and reporting.

Withholding Federal Taxes

Withhold federal income taxes, Social Security, and Medicare taxes from employee's wages. For 2026, Social Security tax is 6.2%, and Medicare is 1.45%. Employees should submit Form W-4 to help determine withholding amounts.

Employee Notices and Credits

Notify employees, except in U.S. territories - that they may qualify for the Earned Income Credit (EIC). Providing this notice enables eligible workers to claim potential refunds.

Tax Deposits

Make tax deposits electronically via EFTPS, following the scheduled deposit frequency. Timely deposits prevent penalties and ensure compliance.

Filing Requirements

File necessary employment tax forms throughout the year, including Form W-2 for wages and Forms 941, 943, 944, or 945 for employment taxes, adhering to deadlines.

Additional Reporting and Industry-Specific Forms

Depending on your industry, you may need to submit additional forms, such as 1099-NEC for independent contractors.