Year-end tax forms for staffing firms come down to three federal filings: W-2s and 1099-NECs, both due February 1, 2027, and ACA Forms 1094-C and 1095-C in March. For 2026, the One Big Beautiful Bill Act (OBBBA) adds new W-2 codes and raises the 1099-NEC reporting threshold to $2,000. This guide covers what each form reports, when it's due, and where multi-state staffing payrolls get tripped up.
What year-end tax forms do staffing firms have to file?
The short answer
Staffing firms file Form W-2 for employees and Form 1099-NEC for contractors paid $2,000 or more, both due February 1, 2027. Firms with 50 or more full-time employees, including full-time equivalents, also file Forms 1094-C and 1095-C: employee copies by March 2, 2027, and IRS copies by March 1 on paper or March 31 electronically.
State and local filings vary by where your placements work.
| Form | What it reports | Due date for 2026 |
|---|---|---|
| W-2 | Wages and withholding for employees | February 1, 2027, to the SSA and to employees |
| 1099-NEC | Payments of $2,000 or more to contractors | February 1, 2027, to the IRS and to recipients |
| 1095-C | Coverage offered to each full-time employee | March 2, 2027, to employees |
| 1094-C and 1095-C | ACA transmittal and employee statements, IRS copies | March 1, 2027, on paper; March 31, 2027, electronically |
Stay ahead of every deadline
Your 2027 compliance calendar
A month-by-month guide with all key federal payroll and tax deadlines, holidays, and monthly tips.
Bookmark Your Copy →W-2 reporting for staffing firms
You file a W-2 for each employee you withhold income, Social Security, or Medicare tax from. For a staffing firm, that covers every temporary, seasonal, and contract placement on your payroll, including the ones who worked two weeks in March. Copy A goes to the Social Security Administration (SSA), and employee copies go to workers, both by February 1, 2027.
Extensions don't bend much. The IRS grants one 30-day extension to file with the SSA only in extraordinary circumstances or catastrophe, and an extension to file doesn't move the date to furnish employee copies. Penalties for returns due after December 31, 2026, are also higher than last year's.
The form itself changes for 2026: box 12 gains codes TA, TP, and TT, and box 14 splits into 14a and 14b. The OBBBA section below covers each change, and our guide to the 2026 Form W-2 changes walks through the filing rules and penalty tiers.
1099-NEC reporting for contractors
Form 1099-NEC reports payments to nonemployees for services. The reporting threshold rose from $600 to $2,000 for payments made after December 31, 2025, and it is indexed for inflation starting in 2027. That makes 2026 the first year some contractors drop off your filing list.
Run 2026 contractor payments against the new threshold before you reuse last year's list. A contractor you paid $1,800 doesn't get a 1099-NEC this year; one you paid $2,000 does. The form is due to both the IRS and the recipient on February 1, 2027, and it has no automatic extension.
The 1099-NEC also has new boxes for cash tips, tipped occupation codes, and qualified overtime, covered in the OBBBA section below.
ACA reporting: Forms 1094-C and 1095-C
Employers with an average of 50 or more full-time employees, including full-time equivalents, are applicable large employers. They file a Form 1095-C for each full-time employee and a Form 1094-C as the IRS transmittal. For the 2026 coverage year, the dates are:
- Employee copies: March 2, 2027.
- IRS, paper filing: March 1, 2027, because February 28 falls on a Sunday.
- IRS, electronic filing: March 31, 2027.
Electronic filing is a bigger question than the paper date. An employer with 10 or more information returns in total must e-file all of them, and W-2s, 1099s, and ACA forms all count toward that number. Staffing headcount puts nearly every firm over the line, so check who has to e-file year-end forms before you plan for paper.
The harder part is the data. Staffing firms track coverage offers across a workforce that turns over constantly, often across several client assignments, and Greenshades' ACA reporting works from the same payroll records you already run.
State and multi-state filings
State requirements sit on top of the federal ones, and the forms, deadlines, and filing methods vary by state. Placements in more than one state can mean state copies of W-2s and 1099s, state withholding and unemployment filings, and in some areas local filings, each on its own schedule. Confirm each state's rules instead of assuming the federal date applies.
Our guide to year-end payroll for multi-state employers covers the state-level details.
What OBBBA changed for 2026 year-end forms
Two OBBBA provisions reach staffing payrolls through year-end forms: qualified tips and qualified overtime. If you pay hourly placements overtime, box 12 code TT applies to your W-2s. If you pay contractors tips or overtime, the new 1099-NEC boxes apply to you. Workers claim the deductions on their own returns; you report the amounts.
OBBBA changes to W-2s and 1099s for tax year 2026
The One Big Beautiful Bill Act (P.L. 119-21) changed what employers and payers report on W-2s and 1099s, starting with tax year 2026. Workers claim the new deductions on their own tax returns. Employers and payers report the amounts.
- Tips. Workers can deduct up to $25,000 for tax years beginning after 2024 and ending before 2029. Qualified tips are voluntary cash or charged tips, including tips received through tip-sharing. Mandatory service charges don't count. Tips must be received in an occupation on the IRS list.
- Occupation codes. The IRS final regulations list more than 70 occupations in eight categories. Codes are on IRS.gov/TTOC. For a plain-language walkthrough, see our guide to the final qualifying occupation list.
- Overtime. Workers can deduct up to $12,500 ($25,000 if married filing jointly) of qualified overtime for the same tax years. Only the premium above the regular rate that the Fair Labor Standards Act (FLSA) requires qualifies.
- Payroll taxes don't change. Tips and overtime are generally still subject to federal income tax withholding, Social Security tax, and Medicare tax.
Changes to Form W-2
| Box | What changed |
|---|---|
| Box 12, code TP | Total cash tips reported to the employer. You must also list an occupation code in box 14b. |
| Box 12, code TT | Total qualified overtime compensation: the amount above the regular rate that the FLSA requires, such as the "half" in time-and-a-half. |
| Box 12, code TA | Employer contributions to the Trump account of an employee or an employee's dependent, paid under a section 128 Trump account contribution program. |
| Box 14a | "Other," the same use as the old box 14. |
| Box 14b | Treasury Tipped Occupation Code(s). Enter up to two codes. Required when box 12 code TP reports cash tips. |
- Trump account contributions. Beginning July 4, 2026, employers may contribute up to $2,500 a year, indexed for inflation after tax year 2027, to the Trump account of an employee or an employee's dependent. The amount is excluded from the employee's gross income if paid under a section 128 program. Learn more about Trump account contributions here.
- Territory W-2s. For Forms W-2AS, W-2CM, W-2GU, and W-2VI, check with the territory on whether codes TP, TT, and TA apply. The IRS W-2 instructions do not cover Puerto Rico.
Changes to Forms 1099-NEC and 1099-MISC
| Form | Reporting threshold | New or changed boxes |
|---|---|---|
| 1099-NEC | $2,000 in box 1a, up from $600. |
Box 1 is now box 1a, nonemployee compensation. New boxes:
The amounts in 1b and 1d are included in box 1a. |
| 1099-MISC |
$2,000, up from $600, for rents, prizes and other income, medical and health care payments, crop insurance, and section 409A deferrals and nonqualified deferred compensation. Royalties and substitute payments stay at $10, and attorney gross proceeds and fish purchases stay at $600. |
New boxes:
The amounts in 13a and 14 are included in box 3. |
If you backup withhold, you report the payment on a 1099 regardless of the amount.
How Greenshades handles staffing year-end
Greenshades Tax & Compliance calculates payroll taxes, files deposits and returns, and produces W-2s, 1099s, and ACA forms from the same payroll data your team already runs. Staffing is one of the industries Greenshades is built for, so high-turnover, multi-state payroll is the standard case, not the exception. See how Greenshades supports staffing payroll and compliance.
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.
