Leave Year
- 2025 Leave Year: Ends Pay Period 2026-02, January 10, 2026.
- Employees in the six-hour leave category will receive their extra four hours in Pay Period 2026-01, which is the last full pay period of the calendar year.
- 2026 Leave Year: Includes Pay Period 2026-03 through Pay Period 2027-02, January 11, 2026, through January 9, 2027.
- Employees in the six-hour leave category will receive their extra four hours in Pay Period 2027-01, which is the last full pay period of the calendar year.
Number of Pay Periods
- 2025 Calendar Year:
- There are 26 pay periods in 2025.
- The final official pay date is December 23, 2025.
- 2026 Calendar Year:
- There are 26 pay periods in 2026.
- The final official pay date is December 22, 2026.
Taxable Earnings Year
- 2025 Taxable Earnings Year: The 2025 taxable earnings year is Pay Period 2025-01 through Pay Period 2025-26, December 15, 2024, through December 13, 2025.
- 2026 Taxable Earnings Year: The 2026 taxable earnings year is Pay Period 2026-01 through Pay Period 2026-26, December 14, 2025, through December 12, 2026.
Pay Schedule Calendars
- The 2026 Payroll Schedule is available at this link: Payroll Schedule Calendars.
Pay Increases
- Authorized increases to basic pay or salaries for 2026 will be effective the first full pay period of the year, Pay Period 2026-03, January 11, 2026.
Electronic Funds Transfer (EFT) Pay Dates
- As a reminder the EFT Pay Date for DOI is the same as the official pay date (second Tuesday following the end of the pay period). Some financial institutions may advance funds prior to the EFT date; however, IBC is unable to address any deposits made prior to the established EFT pay date.
Earnings and Leave Statements
- Employees are responsible for carefully reviewing their Earnings and Leave Statements for any changes that would affect their pay. If you have any questions, please contact the Customer Support Center.
Form W-2s
- The Form W-2, Wage and Tax Statement will be available electronically in Employee Express on January 12, 2026.
- For all employees who do not elect to turn off their hard copy mailing, a printed Form W-2 will be mailed to the employee's address of record no later than January 31, 2026.
- Employees who are expecting a mailed Form W-2 should verify the address listed on their latest Earnings and Leave Statement in in Employee Express.
- To ensure receipt of hard copy W-2, any corrections or changes to addresses should be completed by December 12, 2025.
Switch From Hard Copy to Electronic Form W-2
Employees who want to elect the Electronic W-2 for 2025 should complete the request prior to December 24, 2025. Here’s how to switch from a hard printed copy to an electronic version:
- Access Employee Express and sign in using the PIV Smartcard or LOGIN.GOV.
- Select the “W2 Hard Copy On/Off” link under in the Payroll/Personnel actions section in the left column of the Main Menu page.
- Select the Off option and Save.
- Click Confirm to submit the election.
- Input the email address to receive confirmation of the election.
Employees who choose this option agree and acknowledge that they will obtain their W-2 directly from Employee Express and a hard copy will not be mailed to them. Employees who separate will automatically receive a hard copy by mail.
For assistance signing in to Employee Express, employees should submit a help desk request. To do this, click the Submit Help Request link located in the top right corner of the Employee Express login page.
Form 1095-C
- The Form 1095-C, Employer-Provided Health Insurance Offer and Coverage will be available electronically in Employee Express on January 12, 2026.
- For all employees who do not elect to turn off their hard copy mailing, a printed Form 1095-C will be mailed to the employee's address of record no later than February 28, 2026.
- Employees who are expecting a mailed Form 1095-C should verify the address listed on their latest Earnings and Leave Statement in Employee Express.
- Any address changes must be processed in Employee Express, or by the Servicing Personnel Office, no later than December 12, 2025.
- To prevent the risk of identity theft from lost or stolen forms in the mail, we encourage employees to opt out of receiving hard copy 1095-Cs by December 24, 2025.
For any questions about the Form 1095-C, visit: About Form 1095-C, Employer-Provided Health Insurance Offer and Coverage.
Form W-4 Claiming Exempt Withholding
- To continue an employee’s exemption from federal income tax withholding in 2026, the IRS requires that a new Form W-4, Employee’s Withholding Allowance Certificate, is submitted by the employee to their employer no later than February 17, 2026.
- Please note: We strongly recommend that employees submit the W-4 form no later than February 6, 2026, to allow sufficient time for processing.
- If a new Form W-4 for 2026 is not submitted between January 1 and February 6, 2026, the employee’s federal withholding status will be changed to the highest possible withholding. Forms submitted after February 6, 2026, may not be processed in time to prevent incorrect tax withholding for Pay Period 2026-04.
Occupational Privilege Tax
- Certain localities require an Occupational Privilege Tax to be deducted from employees in their jurisdiction.
- When working within a specific district, the Occupational Privilege Tax is levied.
- While some localities withhold the tax in the first full pay period of the year, the actual deductions will depend on the locality’s withholding requirements.
State and Local Taxes
- To ensure taxes are being withheld from the correct state and/or locality, we encourage every employee to review their Earnings and Leave Statement.
- If an employee notices taxes are being withheld for the incorrect state or locality, or if they are still being withheld for a city the employee no longer lives or works in, they should contact the Customer Support Center as soon as possible.
- The IBC's ability to correct prior-year tax errors is limited—errors from 2025 that are not identified until 2026 may require the employee to file a tax return to recover taxes withheld by the wrong tax entity.
- Wages for non-taxing states are not reported on the Form W-2, Wage and Tax Statement.
Social Security (OASDI) and Medicare Tax
- The Social Security Administration increased the 2026 maximum earnings to $184,500—there is no wage base limit for Medicare tax.
- For 2026, the Social Security and Medicare tax rates remain the same for all wages at 6.2% (OASDI) and 1.45% (Medicare).
- Individuals with earned income of more than $200,000 pay an additional 0.9% in Medicare taxes. Note: The Medicare tax rate shown above does not include the additional 0.9%.
- Additional details are available here: 2026 Social Security Changes.
Voluntary Tax Allotments
- Since voluntary tax allotments are remitted to the locality on the employee's behalf, the amount of “estimated” tax deductions withheld through a voluntary tax allotment will be reflected on the Form W-2 in Box 14 as Item 8 – Estimated Local Tax.
- These amounts are estimated.
- Reconciliation occurs when the employee files an applicable tax return with the locality.
Aggregate Pay Limitation
- For 2026, the statutory limit on pay applies to most employees exempt from the Fair Labor Standards Act (FLSA) per 5 U.S.C. 5307.
- Although basic pay is never cut back, some allowances, differentials, bonuses, or awards may be cut back and deferred to the following year.
- Retention, recruitment, or relocation incentives authorized under 5 U.S.C. 5753 and 5754, may cause employees to exceed the aggregate limitations on pay and may be reduced or suspended.
- The aggregate pay limitation is generally Level 1 of the Executive Schedule.
- OPM's Fact Sheet: Aggregate Limitation on Pay
Annual Premium Pay Limitation
- For 2026, the annual premium pay limits defined in 5 U.S.C 5547(b) apply.
- For employees exempt from the FLSA: If regular pay is projected for the year—plus Title 5 overtime, night differential, standby pay, availability pay, administratively uncontrollable overtime, Sunday premium, or holiday worked—to reach the limits, no additional premium payments will be paid.
- Compensatory time may not be substituted for overtime that is not payable.
- The annual pay limitation is greater than the annual rate of GS-15, step 10 for each locality or Level V of the Executive Schedule.
- OPM's Fact Sheet: Maximum GS Pay Limitations
Transportation Benefits
- The IRS has not announced the 2026 rates because they are contingent on legislation that has not been finalized.
- Once rates are available, they can be viewed in the Publication 15-B, Employer's Tax Guide to Fringe Benefits (see the Fringe Benefit Exclusion Rules section).
Health Benefits
- Unless an employee makes a new FEHB election during Open Season, their 2025 coverage will automatically continue in 2026. Please note that premium rates may change from one plan year to the next.
- Coverage under a newly elected health plan is effective the first day of the pay period beginning on or after January 1, 2026, i.e., Pay Period 2026-03 (January 11, 2026, through January 24, 2026).
- Enrollees will remain covered and receive the benefits of their 2025 plan until coverage under the new plan begins.
- Employees in terminating or reduced coverage plans should make a new election during Open Season (November 10, 2025, through December 8, 2025)
Flexible Spending Accounts
- Unless reauthorized by the employee, pre-tax deductions for the FSA Program automatically stop after Pay Period 2025-26.
- For pre-tax FSA deductions to occur in 2026, new elections must be made during Open Season (November 10, 2025, through December 8, 2025).
- For additional information, visit Flexible Spending Accounts.
Dental and Vision Benefits
- Unless an employee makes a new dental or vision election during Open Season, their 2025 coverage will automatically continue in 2026. Please note that premium rates may change from one plan year to the next.
- To view the new rates or to make changes during Open Season, employees can visit BENEFEDS.
Federal Employees Group Life Insurance (FEGLI)
- There are no changes to the FEGLI rates. Employees can view the rates at OPM’s life insurance site.
Thrift Savings Plan (TSP) – Traditional and Roth Contributions
- The limits for TSP contributions have gone up to $24,500 for 2026. Catch-Up Contributions (age 50 and over) have gone up to $8,000. For participants aged 60-63, the catch-up limit for 2026 is $11,250.
- The combined total of tax-deferred traditional and Roth after-tax contributions cannot exceed the elective deferral limit in any year. Authorized biweekly contribution amounts or percentages will automatically carryover from 2025 into 2026 unless changed or canceled by the employee. Employees who reach the IRS maximum contribution limit before the end of the year will not be able to have further employee contributions and may lose any government matching contributions for the rest of the year. Deduction changes for PP 2026-01 can be made now through Employee Express by entering “12/14/2025” in the Future Effective Date field. Employee Express allows changes to the Effective Date up to 90 days in advance. Employees can change deductions at any time in Employee Express.
Regular Contributions Limit
- In 2026, employees of all ages may contribute up to $24,500 to their TSP account. Federal employees can contribute up to the IRS annual elective deferral limit of $24,500 for their regular contributions.
- To adjust the contribution rate to reach the maximum amount in the last pay period of the year, the employee should divide $24,500 by 26 pay periods and contribute $943 per pay period to reach the Regular Contribution Limit for 2026.
Regular Catch-Up Contribution Limits (Age 50 and over)
- Employees who turn 50 or older during calendar year 2026 may contribute additional catch-up contributions of up to $8,000 towards the TSP account in addition to the $24,500 regular contributions for a total of $32,500.
- To adjust the contribution rate to reach the regular catch-up maximum amount in the last pay period of the year, the employee should divide $32,500 by 26 pay periods and contribute $1,250 per pay period to reach the Regular Catch-Up Contribution Limit for 2026.
Higher Catch-Up Contribution Limit (Age 60-63)
- Participants turning 60, 61, 62, or 63 in 2026 will have a higher catch-up limit than the regular catch-up limit. The higher catch-up limit in 2026 is set at $11,250 towards the TSP account in addition to the $24,500 regular contributions for a total of $35,750.
- In the years participants turn 64 and older, the catch-up limit will go back down to the lower, regular catch-up limit amount.
- To adjust the contribution rate to reach the higher catch-up maximum amount in the last pay period of the year, the employee should divide $35,750 by 26 pay periods and contribute $1,375 per pay period to reach the Higher Catch-Up Contribution Limit for 2026.
- OPM is contracted with the Give Back Foundation for federal employees to make CFC pledges through one giving system.
- To sign up, select charities, and setup new donor contributions for 2026, visit cfcgiving.opm.gov no later than December 31, 2025.
- Per 5 C.F.R. § 950.701, the 2026 CFC deductions will take place in Pay Period 2026-04 through Pay Period 2027-03 (January 25, 2026, through January 23, 2027).