Why this matters to fleets and owner-operators

The IRS has released Publication 15 (Circular E) for tax year 2026, laying out federal income-tax withholding rules and the Social Security and Medicare (FICA) payroll parameters employers must use starting January 1, 2026. The new guidance confirms unchanged FICA rates but a higher Social Security wage base—changes that affect paycheck withholding for company drivers and quarterly planning for owner-operators.

The 2026 FICA numbers at a glance

Social Security (OASDI) tax rate: 6.2% for employees and 6.2% for employers; 12.4% total.
Social Security taxable wage base: $184,500 for 2026 (up from $176,100 in 2025). That yields a maximum employee Social Security tax of $11,439.
Medicare tax rate: 1.45% each for employee and employer; no wage cap.
Additional Medicare Tax: extra 0.9% withheld from an employee’s wages above $200,000; for individuals, thresholds apply by filing status (for example, $200,000 single; $250,000 MFJ) and also apply to self-employment income via Form 8959. No employer match.

What fleet payroll teams should do now

Update payroll systems for the $184,500 Social Security wage base and confirm FICA rates are set correctly for 2026 payroll runs.
Verify your federal deposit schedule for 2026. The lookback period that determines monthly vs. semiweekly status is calendar year 2024 for most filers—don’t assume last year’s schedule still applies.
Apply the 2026 federal withholding methods found in Publication 15‑T if you run manual checks or need to validate system outputs. For bonuses and other supplemental wages, you may use the 22% flat rate (or 37% for supplemental wages over $1 million), per Pub. 15.
Revisit driver classification and information reporting. Pub. 15 reiterates that Forms W‑2 report employee wages, while nonemployee payments are generally reported on Form 1099‑NEC. For payments made in 2026, the federal 1099‑NEC/1099‑MISC reporting threshold increases to $2,000 (up from $600 for payments made in 2025). Plan vendor onboarding and year‑end processes accordingly.

Owner-operators: plan now for self-employment tax

Independent drivers taxed as sole proprietors pay self-employment (SE) tax in place of employee/employer FICA—15.3% in total, comprised of 12.4% Social Security (up to the $184,500 base) and 2.9% Medicare on all net earnings. The SE tax is computed on 92.35% of net earnings, and you can deduct the “employer‑equivalent” half of SE tax when figuring AGI. High earners may also owe the 0.9% Additional Medicare Tax on combined wages and self-employment income above filing‑status thresholds, calculated on Form 8959. Build these amounts into quarterly estimated payments to avoid penalties.

Driver pay practices to double‑check

Bonuses, safety awards, overtime, and certain taxable allowances are “supplemental wages.” If paid separately from regular wages, you can withhold federal income tax at the 22% flat rate (or use aggregate/percentage methods in Pub. 15‑T). These payments remain subject to FICA.
Per‑mile or per‑diem structures: Amounts paid under nonaccountable plans are taxable wages subject to withholding and FICA; ensure your policy and system coding match Pub. 15 guidance.

Key dates and reminders for 2026 operations

Effective date: The 2026 Publication 15 rules apply to wages paid in the tax year beginning January 1, 2026.
Deposit timing: Use electronic funds transfer for all federal tax deposits; observe monthly vs. semiweekly deadlines and the $100,000 next‑day rule.

Bottom line for trucking: set your payroll and settlement systems to the 2026 specs now, communicate the Social Security cap changes to high‑earning drivers, and ensure owner‑operators understand how the higher base and Additional Medicare thresholds feed into quarterly estimates. Doing this early will prevent surprises in settlements and cash‑flow crunches during peak freight weeks.

Sources Consulted: IRS; Social Security Administration; Mercans.

Need to file your Form 2290?

Join thousands of owner-operators and carriers who trust HeavyTax.com for fast and easy HVUT e-filing.

This article was prepared exclusively for truckstopinsider.com. For professional tax advice, consult a qualified professional.