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Federal Business Law Update: What Changed on January 1, 2026 (U.S. Overview for Miami-Dade Companies)

Executive summary: A handful of federal changes went live on January 1, 2026 that will affect how Miami-Dade businesses run payroll, reimburse mileage, issue 1099s, run benefit plans, and—if you’re in money services—collect a brand-new excise tax on certain remittances. Below is what changed, why it matters, and what to do this month.

1) 1099 reporting: the classic $600 threshold is now $2,000 (most payees)

Starting with payments made on/after Jan 1, 2026, the informational-reporting trigger for many 1099-NEC/1099-MISC payments rises from $600 to $2,000 (then indexed after 2026). Your A/P rules, vendor onboarding, and backup-withholding logic should be updated to the new floor. For 2025 payments, the old $600 rules still apply when you file this season. (IRS)

Do now (A/P):

Update your vendor master and 1099 settings to $2,000.

Refresh W-9 collection and backup-withholding prompts to the new threshold.

2) 1099-K (platforms/apps): the 20,000/200 rule continues

For 2026, third-party settlement organizations (payment apps/marketplaces) still use the $20,000 and 200-transactions threshold for issuing Form 1099-K (though some platforms may voluntarily issue at lower levels). Reconcile gross vs. net and fees carefully in January. (IRS)

Do now (marketplace sellers/merchants):

Ask your platform which 1099-K threshold it’s using.

Align your bookkeeping to the gross amounts the platform reports.

3) New federal 1% excise tax on certain cash remittance transfers

If you operate a money services/remittance business, a 1% excise tax now applies to certain cross-border consumer remittances when the sender pays with cash, money order, cashier’s check, or similar instruments. Providers must collect the tax from the sender, make semimonthly deposits, and file quarterly (Form 720). Build deposit calendars, receipts/disclosures, and internal controls right away. (IRS)

Do now (MSBs/fintech/payment shops):

Update POS scripts/receipts to show the tax line.

Stand up semimonthly deposit and Form 720 workflows; train front-line staff.

4) Standard mileage rate: up to 72.5¢/mile for business use

From Jan 1, 2026, the optional IRS rate for business use of a personal vehicle rises to 72.5¢/mile. Adjust reimbursement policies, expense software, and taxable fringe calculations (if you true-up above IRS rates). (IRS)

Do now (Payroll/HR/Finance):

Update mileage policies and your expense tool to $0.725.

Communicate the new rate to traveling employees and contractors.

5) Payroll tax cap: Social Security wage base is $184,500

The OASDI wage base increased to $184,500 for 2026 (6.2% employer + 6.2% employee). Medicare remains 1.45% (plus 0.9% Additional Medicare over the usual thresholds). Check owner-comp planning and bonus timing. (Social Security)

Do now (Payroll):

Update your payroll system and withholding projections to the new cap.

Revisit exec comp to avoid unpleasant surprises in Q1 pay cycles.

6) HSAs: bigger contribution limits and broader plan eligibility for 2026 plan years

Two important updates intersect here:

Contribution limits for 2026 increased to $4,400 (self-only) and $8,750 (family); catch-up remains $1,000 at age 55+. (IRS)

More plans qualify as HSA-compatible beginning with plan years starting on/after Jan 1, 2026: Bronze and Catastrophic plans may be treated as HSA-compatible (on or off exchange), and certain direct primary care (DPC) arrangements can pair with HSAs under new guidance. Coordinate with your broker to avoid accidental ineligibility. (IRS)

Do now (Benefits):

Confirm your 2026 plan’s HSA compatibility and update SPD/SBC language.

Adjust employer HSA contributions and payroll deductions to new limits.

7) Retirement plans: higher 2026 limits (starts with 2026 plan/year)

For 2026, the 401(k)/403(b)/457(b) elective-deferral limit rises to $24,500, with the standard catch-up at $8,000 (and a special $11,250 catch-up for ages 60–63 continuing in 2026). Total defined-contribution limit (IRC 415(c)) increases to $72,000. Update deferral elections and nondiscrimination testing assumptions. (IRS)

Do now (HR/TPA):

Open a brief Q1 “check your deferral” window and refresh enrollment materials.

Update safe harbor notices and payroll caps to 2026 figures.

8) Federal contractor wages: enforcement change to the 2022 contractor minimum-wage EO

The Department of Labor has announced it is no longer enforcing EO 14026 (the post-2022 contractor minimum-wage rule) and will rescind the implementing regulation. Your contract’s specific wage clause still governs, so federal vendors should verify which clause applies to every award and option year. (DOL)

Do now (GovCon):

Inventory wage clauses across active contracts and align posting/notices.

Confirm pricing assumptions for option-year proposals in 2026.

Quick January checklist (Miami-Dade businesses)

Accounts Payable: Switch 1099-NEC/MISC workflows to $2,000; update backup-withholding triggers. (IRS)

Platforms/Marketplaces: Confirm 1099-K rules with providers; reconcile platform statements to your books. (IRS)

Payroll: Apply $184,500 wage base; update mileage to 72.5¢; review officer comp timing. (Social Security)

Benefits: Validate HSA compatibility for 2026 plans and adjust contributions to new limits. (IRS)

Money Services/Fintech: Build the new 1% remittance excise tax collection/deposit/filing process. (IRS)

Federal Contractors: Recheck which wage EO applies per contract while DOL rescinds EO 14026 enforcement. (DOL)

Excerpt 

“From the new $2,000 1099 threshold and a 72.5¢ mileage rate to a 1% remittance excise tax and higher HSA/retirement limits, here are the federal changes Miami-Dade businesses need as of January 1, 2026.”

Contact CTA

For help updating contracts, payroll/benefits settings, and compliance procedures, contact Attorney Yoel Molina at admin@molawoffice.com, call (305) 548-5020 (Option 1), or message via WhatsApp at (305) 349-3637.