In this issue, we highlight compliance developments that may affect payroll, tax, and reporting obligations, along with Greenshades resources that can help your organization prepare, file, and respond with confidence.
Year-end filing can be demanding. Greenshades is preparing tools and resources to help streamline each stage of the process.
Your review remains essential. Please verify imported data, monitor filing progress, and confirm that each return has been successfully submitted.
Greenshades Software Inc. is authorized to transmit supported IRIS returns, including Forms 1098, 1099, 1042-S, and W-2G. Greenshades is also approved to submit ACA returns and federal W-2 e-files.
The Year-End Forms portal supports these and other forms and provides Excel templates to help you import data efficiently. The portal also includes an easy-to-follow wizard that guides you through formatting, filing, and distribution options.
If you file more than 10 federal information returns in aggregate for an EIN, federal rules generally require all covered returns for that EIN to be filed electronically.
Q3 2026 quarter-end processing begins Thursday, October 1, 2026.
As year-end approaches, employers should be aware of U.S. Postal Service guidance that may affect how mailing dates are documented for tax statements, tax returns, and other time-sensitive documents. This guidance is also relevant throughout the year whenever tax returns or related correspondence must meet required filing, mailing, or recipient distribution deadlines. Many agencies rely on the postmark date to determine whether a filing or recipient distribution requirement was met by the applicable deadline.
Greenshades offers year-end print and mail services on a sliding fee schedule. Processing forms earlier can help reduce mailing costs and provide additional time to meet distribution deadlines. Delaying print and mail requests, whether completed through Greenshades or internally, may increase the risk that statements do not receive a postmark date that supports timely distribution.
The U.S. Postal Service has clarified that automated postmark dates may reflect when mail is first processed at a regional facility, rather than the date the item was placed in a collection box or dropped off. For mailings tied to strict deadlines, clients should consider requesting a manual “round-date” postmark at a USPS retail counter.
Hawaii employers must file Form UC-BP-52(a) when an employee’s work hours are reduced because of a lack of work and the employee earns less than the potential weekly unemployment benefit amount.
The report must be filed electronically through the Hawaii unemployment portal. This reporting requirement is time-sensitive and must be completed within five working days after the pay period in which the low earnings occurred.
The report must include the employee’s name, Social Security number, gross earnings for the pay week in which the low earnings occurred, and the reason for the low earnings.
Employers must also file Form UC-348, Verification of Partial Unemployment Status, within five working days after an employee files a claim for partial unemployment benefits. This form is also submitted electronically through the Hawaii unemployment portal. See the next column for where to locate the form.
Once the form is submitted, the employer will receive a confirmation email. Amendments cannot be made through the portal; however, employers may contact the local office to correct a submitted form.
Employers should review the contact information on file to ensure the appropriate employee receives notifications and has the necessary portal access to complete the required reporting.
On April 22, 2026, the U.S. Department of Labor’s Wage and Hour Division published a Notice of Proposed Rulemaking that would revise how the agency evaluates joint-employer status under federal wage and hour laws. The proposal would establish regulatory guidance for determining joint-employer status under the Fair Labor Standards Act (FLSA) and would amend existing regulations under the Family and Medical Leave Act (FMLA) and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA) so the same analysis would apply under those laws.
The proposal is significant because a joint-employer finding may make one business responsible for workers formally employed by another entity. Employers that use staffing agencies, contractors, franchise models, agricultural labor contractors, professional employer organizations, management-services companies, or affiliated entities should pay close attention to the proposed standard.
Unified Standard and Vertical Joint Employment. The proposed rule would restore FLSA joint-employer guidance at 29 CFR part 791 and use that analysis under the FMLA and MSPA. “Vertical” joint employment generally involves a worker who is employed by one business, such as a staffing agency or subcontractor, while performing work that benefits another business that may direct or control aspects of the work. For these relationships, the proposed rule focuses on whether the potential joint employer:
Reserved Control. The analysis would not be mechanical. Additional facts may be relevant, and when all four factors point in the same direction, there is a substantial likelihood that joint-employer status either exists or does not exist. The DOL would consider both reserved and exercised control, although exercised control would generally carry more weight.
Horizontal Joint Employment. “Horizontal” joint employment generally involves the same employee working for two or more separate businesses in the same workweek, such as related businesses or businesses that coordinate employment decisions. The key question is whether the businesses are sufficiently connected with respect to that employee’s work. Ordinary business relationships, such as sharing a vendor or common franchisor, generally are not enough by themselves.
The U.S. Department of Labor’s Wage and Hour Division announced a technical amendment to update the salary-level regulations in Part 541 of Title 29. The amendment removes provisions vacated by federal courts, including the 2024 salary thresholds, and restores the 2019 levels used to determine whether certain executive, administrative, and professional employees may qualify as exempt from minimum wage and overtime requirements under the Fair Labor Standards Act.
When a customer pays by credit card, they may add a tip to the transaction. Because credit card payments generally include processing fees, employers should confirm whether those fees may be deducted from the employee’s tip before payment.
Some states require employers to pay the full tip amount to the employee before deducting any credit card processing fees. These states include California, Delaware, Maine, Massachusetts, Minnesota, New Jersey, and Pennsylvania.
Most states follow the federal Fair Labor Standards Act, which permits employers to deduct the processing fee from the tip portion only if all of the following conditions are met:
Several states have additional requirements or unresolved treatment for credit card processing fee deductions:
Kentucky and Montana: These states do not specifically address whether processing fee deductions are permitted.
Contractors on federally funded construction projects should note these Davis-Bacon updates:
Minimum wage: The separate $17.75/hour federal contractor minimum wage was rescinded in March 2025, but Davis-Bacon prevailing wage and fringe rules still apply.
WH-347: The revised certified payroll form, effective January 2025, adds fringe benefit and apprenticeship reporting; the prior form may be used through September 30, 2026.
Penalties: Civil penalties now exceed $13,500 per violation after inflation adjustments.
2026 wage determinations: DOL updated rates across many counties, so contractors should verify each project location.
Next steps: Review policies against the 2023 rule, prepare for the new WH-347, verify wage determinations, and confirm apprenticeship documentation before the 2026 deadline.
Notice 2026-48, Notice of Intent to Issue Regulations with Respect to Saver’s Match Contributions
IR-2026-88 — Updated frequently asked questions on the deduction for qualified overtime compensation.
The updated guidance appears in Fact Sheet FS-2026-13 and revises Fact Sheet FS-2026-01, issued in January 2026.
Notice 2026-80, Trump Accounts Safe Harbor
Connect with us in the Compliance Corner LinkedIn group.
Explore more updates in Compliance Corner.
Note: This information is for informational purposes only and does not constitute formal tax, legal, or compliance advice. Always consult with qualified tax advisors, legal counsel, and your organization's internal teams for guidance specific to your situation. Additional regulations may apply. For the most accurate and up-to-date information, refer to official government resources and regulatory agencies.