January 2026: The Small Business Owner’s HR, Benefits, Payroll, and Tax Compliance Deadlines

It’s the start of a new calendar year, so you know what that means: new goals to reach and new deadlines to meet. Along with having some crucial compliance deadlines, January is also the unofficial start of tax season—and it’s never too early to get your business prepared. 

Here are all the HR, benefits, payroll, and tax dates you need to know about this month. 

A special note: Many typical January 31 compliance deadlines (such as filing Form 944 and furnishing W-2s to your employees) fall on February 2 this year because the last day of January is a weekend. That means you have a couple extra days to get your ducks in a row, but don’t let the change set you back—it’s still a good idea to work on getting your forms ready this month! 

Here are the February compliance deadlines so you can get a jumpstart.

Federal holidays

January 1, 2026

New Year’s Day

Many businesses close up shop on New Year’s Day. If you fall into that category, enjoy the holiday!

January 19, 2026

Martin Luther King Jr. Day

Government agencies and schools shut down in honor of Martin Luther King Jr. and his contributions to the Civil Rights Movement, but plenty of businesses still stay open. Make sure your operation is prepared. 

Tax and payroll compliance deadlines

Payroll tax deposits (for semi-weekly depositors)

If you’re an employer, you have to file Forms 940 and 941 to deposit payroll taxes at different frequencies throughout the year. 

If you report more than $50,000 in payroll taxes during the lookback period of July 1, 2024, to June 30, 2025, you’re considered a semi-weekly depositor and must follow the schedule below:

There’s one exception: if you accumulate $100,000 or more of tax liability in a single day, the IRS says you must deposit the amount by the following business day, regardless of whether you normally deposit on a semi-weekly or monthly basis (more on monthly deposits below).

To learn more about federal payroll tax deposits, read Publication 15. 

Keep in mind that some state and local governments that collect payroll taxes will also expect their own deposits, and those deadlines may be different from the federal ones. For more information, contact your state and local tax agencies directly. 

Quarterly state and local taxes

If you live in a state or local area that collects income tax, your fourth quarter taxes for the 2025 tax year are due this month. This deadline may be different from the federal due date, so check with your state and local government tax agencies for further details. 

January 1, 2026

Start of Q1

Q1 has begun! It’s the first day of the quarter for businesses that run on a calendar year. 

January 12, 2026

Employee tip reporting deadline for December 2025

If your employees earned tips of $20 or more during December 2025, they need to report them to you by January 12. You can learn more about tip withholding and reporting requirements here. 

January 15, 2026

Payroll tax deposits for monthly depositors

If your company follows the monthly payroll tax deposit schedule (meaning that you reported less than $50,000 in payroll taxes during the lookback period), then your tax deposit for December 2025 payrolls is due on January 15. 

Federal estimated tax payments

If you make quarterly estimated tax payments, your fourth payment of the year is due January 15. You will likely make quarterly estimated tax payments if you fall into one of the following categories:

• C corporation

• S corporation shareholder

• Partnership

• Sole proprietor 

• Independent contractor

• Freelancer

• Farmers and fishermen

You can pay online, over the phone, or via mail using Form 1040-ES. For more information on estimated taxes, review Publication 505.

HR compliance deadlines

January 2, 2026

Review employee handbooks and distribute the 2026 calendar

Review your employee handbook and make any necessary changes for equity, safety, or inclusion.

You may want to address:

• Guidelines for remote working

• Privacy policies

• Compensation and benefits

• Performance reviews

• Time and attendance policies

• Procedures for termination and discipline

• Workplace safety and emergencies 

Give every employee an updated copy of the handbook, along with a 2026 calendar listing important business dates and holidays. It’s helpful to give workers at least one pay period to review the handbook, sign an acknowledgement form that they received it, and address any immediate questions. 

Review state and local minimum wage changes 

The beginning of January is when most new laws go into effect. Take some time to review your city and state’s current minimum wage, pay equity, and pay transparency and reporting laws to make sure you’re aware of any recent changes. 

This year, a lot of states have minimum wage increases taking effect in January, including: 

• Arizona

• California

• Colorado

• Connecticut

• Hawaii

• Maine

• Missouri

• Nebraska

• New Jersey

• New York

• Rhode Island

• Washington

It’s also smart to keep an eye on your state’s paid leave laws to take note of any possible changes. Colorado’s game-changing new NICU leave policy takes effect on January 1, and both Delaware and Minnesota have new paid leave programs starting January 1 as well. 

If you need to make changes, carve out some time on the calendar to update your policies and keep employees in the loop.  

Send health benefits notices

You need to distribute your Summary of Benefits and Coverage (SBC) to all qualifying employees at the start of every new plan year, plus additional notices if you offer health benefit plans that are part of the Children’s Health Insurance Program (CHIP), Qualified Small Employer Health Reimbursement Arrangement (QSEHRA), Consolidated Omnibus Budget Reconciliation Act (COBRA), Women’s Health and Cancer Rights Act (WHCRA), HIPAA special enrollment, or Newborns’ & Mothers’ Health Protection (NMHPA). 

Update your labor law posters and signage

Confirm that your federal, state, and local labor law compliance posters are up to date and properly displayed in your workplace by the start of the year. You can order federal labor law posters from the Department of Labor. 

Remind employees about the ACA open enrollment end date

For states using the Affordable Care Act (ACA) marketplace, the federal open enrollment period for individual coverage in 2026 ends on January 15. Note that some states use their own marketplace; the open enrollment deadline in those states may differ from the federal one.

January 15, 2026

Deadline for final minimum funding quarterly payment for defined benefit plans

If your defined benefit plan is subject to the minimum funding requirements, you must make quarterly installment payments of the required contributions. You need to make your final minimum quarterly installment payment by January 15.

Learn more by reading IRS Publication 560. 

January 30, 2026

Deadline to provide participants of a defined benefit plan with a notice of benefit restrictions

You need to provide participants and beneficiaries of a defined benefit plan with a notice of benefit restrictions if the plan is less than 60% funded. This notice is due January 30, or 30 days after the measurement date at which the plan has become subject to a benefit restriction.

Send participant data to your third-party administrator

If you collect participant data for your 401(k) plans, you may need to send this data to the third-party administrator who conducts your 401(k) nondiscrimination testing by January 30. This includes data for average deferral percentage/average contribution percentage, top-heavy, and 402(g) compliance testing.