PayCalc Developments

Payroll Calculator (PayCalc)
Developments Page

2026.00 — 12/15/2025 (Initial Release)

Added. Support for Federal income tax withholding from payer of third-party sick pay.

Modified. The Payroll Check Generator Setup window bank account number field from 20 to 17 characters.

Added. The following codes to Form W-2 box 12, in order to comply with the passage of the "One Big Beautiful Act" (OBBA):

TT - Employer contributions under a section 128 Trump account contribution program paid to an employee or dependent of employee;

TP - Total amount of cash tips reported to the employer. The employer is not a specified service trade or business;

TS - Total amount of cash tips reported to the employer. The employer is a specified service trade or business;

TT - Total amount of qualified overtime compensation.

Added. Form W-2 box 14b, "Treasury Tipped Occupation Code" which is a requirement due to the passage of the OBBA. Also, a list window has been added which displays a list box of Treasury Tipped Occupation codes, from where the user can select a code number.

Added. Eight (8) additional code fields within box 12 on Form W-2. Although there are now 12 possible codes within box 12, only the first 4 codes (12a through 12d), will be printed on the Form W-2, the remainder (12e through 12l), is for use by the EFW2 module. See the program's help file for additional information.

Updated. The Federal Withholding Tax Rate Tables and Payroll Processing Information for calendar year 2026.

Modified. Due to the passage of the OBBA, which made permanent the passage of the "Tax Cuts and Jobs Act" (TCJA) of 2017 (which eliminated Federal Withholding Allowances); the Form W-4 Process check box is unnecessary and has been eliminated, also, The "Number of Federal Withholding Allowances" fields on the "Employee File Maintenance" and on the "Create New Employee" windows are now program calculated as a result of this modification. Furthermore, the value of one (1) withholding allowance is no longer valid on the "Federal Withholding Tax Rate Tables and Payroll Processing Information for Calendar Year 2026" and it will no longer be used to process payroll.

Added. Direct support for the computation of overtime pay at double the regular rate. A check box has been added to the Employee File Maintenance and the Create New Employee data entry windows to to facilitate the processing of this new program feature.

Since the passage of OBBA, it is now mandatory to distinguish between overtime paid at time-and-a-half (The most common form, mandated by the Fair Labor Standards Act (FLSA)), requires at least 1.5 times an employee's regular hourly rate for hours worked beyond 40 in a workweek. Double time is not mandated by the FLSA and is a pay rate of two times an employee's regular pay. This rate is not required by federal law but may be mandated by state law (such as in California), union contracts, or voluntary employer policy. If an employer pays double time, only the initial half-time premium portion that satisfies the FLSA requirement is considered qualified overtime.

Added. "Qualified overtime compensation" data entry field to the Employee Manual Entry window.

The field will display a Qualified overtime compensation as computed by the program (if employee was paid overtime). If payroll is being processed in accordance with the FLSA (see paragraph above), this field should not require any modification. However, if payroll is being processed in a manner that does not conform with FLSA rules and regulations, then this field will require modification.

The purpose for the addition of this field is to assist employers in tracking their employees Qualified overtime compensation every pay period, instead of having to perform lengthy computations at the end of the year.

Added. "Qualified overtime compensation" data entry fields to the Employee File Maintenance Window to display month, quarter and year to date accumulations.

2026.01 — 02/25/2026

Added. A second field on box 14b of Form W-2 to support an additional "Treasury tipped occupation code" as per IRS modification.

Modified. The flowing boxes were modified on Form W-2 per IRS modifications:

Box 9 - was reduced to one line;

Boxes 11 and 13 - were moved up the page by one line each;

Box 14a - was enlarged by one line.

Modified. Recharacterized the bank information to be entered at the bottom of Forms 940, 941 and 944 from an "Electronic Funds Transfer" to a "Direct Deposit" of a tax overpayment.

If a tax overpayment appears on Form 940, 941 or 944, check the refund box and enter the bank information to direct deposit the tax overpayment. However, if there is a tax due balance, such tax due balance must be paid electronically through the "Electronic Federal Tax Payment System" (EFTPS), or "Pay.Gov". Also, if applicable, the tax balance due may be paid by check or money order.

Note: The bank information is required to be entered through the "Company/Employer Data" window and not directly on Form 940, 941 or 944.

Added. Support for printing Form W-2 employee, employer and state filing copies for 2026.

Modified. As required by the Social Security Administration (SSA), the following fields on the "Company/Employer Data" window are now required and must be completed:

1. E-mail address;

2. Name of the Employer's Contact person or person responsible for signing payroll tax forms;

3. Title of the Employer's Contact person or person responsible for signing payroll tax forms.

Modified. In order to make the EFW2 module more intuitive; the following informative fields have been added:

1. Total Forms W-3 Processed;

2. Total Forms W-2 Processed;

3. Total Wages, tips, other compensation Processed.