January 1st marks more than just a new year; it launches 'Compliance Season' for small business owners. Navigating the IRS deadlines and HR requirements of January 2026 is essential to avoiding penalties and starting the year with confidence.

This guide outlines payroll schedules, HR responsibilities, and key tax deadlines you need to meet now.

Federal Holidays to Keep in Mind

Two federal holidays in January may influence the filing and payroll deadlines:

• January 1, 2026: New Year’s Day: Many businesses close. When you are closed, make sure you plan further to avoid the delay of payroll and filings.
• January 19, 2026: Martin Luther King Jr. Day: Most businesses remain open, but government offices and banks are closed. Ensure your payroll is processed early to account for the banking holiday.

Your January 2026 Compliance Calendar

January is one of the busiest months of the business tax year. The dates, which are to be taken into account, are:

Jan 1, 2026: New Year Reset

• The start of Q1, i.e., new quarterly obligations start.
• Update payroll systems for new minimum wage rates and benefit plan changes.
• Make sure your payroll software is up to date with the most recent tax tables and rates in 2026 with PayProNext.

Jan 12, 2026: Tip Reporting

• Employees who earned $20 or more in tips during December must report them today. This ensures accurate withholding for Social Security and Medicare.

Jan 15, 2026: Mid-Month Compliance

• Estimated tax payments for 2025 in the fourth quarter.
• Payroll tax deposit deadlines for monthly depositors fall today.
• Last day to complete minimum health coverage decisions under many ACA plans.

Feb 2, 2026 (Observed): Major Filing Deadline

As January 31, 2026, is a Saturday, the 31st of January, 2026, the deadline is February 2:

• Distribute W-2s to employees and file with the Social Security Administration (SSA).
• Distribute 1099-NEC forms to contractors and e-file with the IRS who earned $600+.
• Form 941 for Q4 2025 must be filed with the IRS.
• Form 940 (FUTA) tax return is due.

To learn more about the required payroll forms, such as W 2s, 941s, etc., visit the 9 Essential IRS Payroll Forms guide in PayProNext.

January Tax & Payroll Deadlines Small Businesses Must Meet

Payroll Tax Deadlines: Know Your Schedule

Compliance is based on payroll taxes. Depending on your prior taxable income, the IRS has two schedules of deposits:

• Monthly Depositor: Due by Jan 15 for December 2025 wages.
• Semi-Weekly Depositor: Due according to your pay cycle.

Semi-Weekly Depositor Schedule

If your business paid over $50,000 in payroll taxes within the lookback period (July 1, 2024 -June 30, 2025), have the following schedule:

• Paydays on Wednesday, Thursday, or Friday → deposit by the following Wednesday
• Paydays on Saturday, Sunday, Monday, or Tuesday → deposit by the following Friday

Note: In case you have to pay one hundred thousand dollars or more in taxes in one day, pay it in the next business day, regardless of your regular schedule.

Penalties may be imposed for failure to pay the payroll tax deadlines of January 2026. Automation of these deposits and reduction of risk is achieved through the use of a smart payroll. The article Payroll Best Practices for small businesses, as offered by PayProNext informs on the best practices and the benefits of automation of Payroll.

Quarterly State and Local Tax Deadlines

Income and payroll taxes are paid quarterly by many of the states and localities. There are also state deadlines in January 2026, so far as Q4 2025 is concerned. These do not necessarily coincide with federal deadlines. Check your state and local tax agencies for exact filing dates. Filing late can trigger penalties and interest.

Detailed Payroll & Tax Tasks for January

1. Run Year-End Reconciliation

Check wages, withholdings, benefits, PTO payouts, and tax deposits. Fix any mistakes prior to starting tax filings; errors in W 2s or 941s may lead to expensive corrections.

2. Prepare and Issue W-2s and 1099s

• W-2s go to employees.
• 1099 NECs are distributed to contractors who are qualified.
• File copies with SSA/IRS.

This is also connected with the classification of the employees and adequate filings, the key to evading IRS audits.

3. File Quarterly & Annual Returns

• Form 941 (Q4 wages & taxes).
• Form 940 (FUTA).

When you have unusual payrolls such as remote employees or multi-state teams, then you might need to ensure remote payroll compliance practices. See PayProNext’s blog on paying remote workers for details.

HR Compliance in January

Other than taxes, employers must meet other HR deadlines:

Mandatory Posting Updates

The poster used by the federal and state governments should incorporate the latest legislation, such as overtime, the minimum wage, and safety warnings.

Employee Handbook Refresh

Remote working policies, compensation transparency, paid leave, and remote attendance policy should all be reviewed.

Form I-9 Internal Audit

Ensure all activeI-99 forms are fully filled, and those that have become outdated or those that have been changed are either properly archived or destroyed as per federal requirements.

Key HR Deadlines in January 2026

January 2, 2026: Employee Handbook & Calendar

• Employee Handbook & Calendar: Review and update policies regarding remote work, privacy, and compensation. 
• Distribute the 2026 version to all employees and collect signed acknowledgment forms.

Review Minimum Wage and Paid Leave Changes

• Some states increase minimum wages in January: Arizona, California, Colorado, Connecticut, Hawaii, Maine, Missouri, Nebraska, New Jersey, New York, Rhode Island, and Washington.
• Monitor new paid leave initiatives in Colorado (NICU leave), Delaware, and Minnesota.

Health Benefits Notices

• Send SBC and other notices in CHIP, QSEHRA, COBRA, WHCRA, HIPAA special enrollment, and NMHPA.
  

Labor Law Posters

• Revise federal, state, and local compliance posters prior to the beginning of the year. ACA Open Enrollment Notifications.

ACA Open Enrollment Reminders

• To the states that adhere to the federal marketplace, open enrollment will cease on January 15, 2026.
  

Employee Benefits & ACA Reporting Preparation

The first month of the year starts the ACA reporting season. Employers must:

• Collect coverage offer information for full-time employees.
• Determine 1095 C forms to be distributed by Jan 31, 2026.
• Start preparing 1094 C transmittals to be sent to the IRS.

When prepared correctly, chances of IRS notices are reduced and it also helps employees when filing their personal taxes.

Defined Benefit Plan Compliance

January 15, 2026: Final Minimum Funding Payment

• Minimize the funding under defined benefit plans by requiring the last quarterly contribution to be made. According to IRS Publication 560.
  

January 30, 2026: Notices & Participant Data

• Provide notice to the participants of the restrictions to benefits in case the plan is less than 60% funded.
• Report to your 3rd-party administrator participant data on 401(k) nondiscrimination testing, such as top-heavy and 402(g) limits.

How to Prepare for January Tax Deadlines

Here’s an actionable checklist to help you prep:

• Check on employee and contractor details.
• 2025 -Internal payroll audit.
• Accept filing (e-file or paper).
• Install reminders or automatic tabs in the calendar.
• Data synchronization of payroll and HR departments.
• Confirm software updates (minimum wage, tax tables).
  

Payroll software such as PayProNext can be used to facilitate these processes by automating tax calculations, payrolls and reporting.

Why Professional Support Matters

DIY compliance may be economical in the short run, but time spent learning what tax filings small businesses have to make by January of 2026 usually offsets professional expenses.

Consider options such as:

• Small business tax compliance help
• Outsourced tax compliance services
• Payroll tax filing services
• Small business CPA services

Professional support reduces compliance risk, streamlines filing workflows, and safeguards your business against penalties.

Priority Action List: January 2026

Jumpstart February

In the future, there are a number of significant deadlines in February 2026, such as further payroll deposits, tax filing, and ACA submissions. You have to start the preparation of your documents early in order to avoid stress in the final minutes. A rolling compliance calendar is helpful to make sure that no deadline slips through the cracks.

Conclusion

The compliance checklist of January 2026 is extensive, yet it can be addressed with an adequate strategy in place and effective systems in place. As the payroll tax practice will be paid in January 2026 to the HR and benefits requirement, everything on the compliance calendar in 2026 counts.

Solutions and best practices. Plan and automate now - through solutions and best practices - including tax planner services, virtual tax compliance solutions, or PayProNext tools will not only ensure that you meet your obligations but also, by positioning your business to have a fruitful tax year ahead.