Roll With Paid. Urges Minnesota Hourly Employers to Review Tip and Overtime Records Before First-Year W-2 Changes
Roll With Paid., a Minnesota payroll and employer-of-record company, is urging hourly employers to review their 2026 tip and overtime records before year-end. 2026 is the first year these must be reported separately on Form W-2, and Minnesota’s minimum wage and wage-notice rules change on January 1. The company is offering no-cost year-end payroll comparisons to Minnesota employers through December 15, 2026.
MInneapolis, MN, November 10, 2026 --(PR.com)-- Roll With Paid., a Minnesota-based payroll, HR and employer-of-record (EOR) company, is urging hourly employers to check their 2026 tip and overtime records now, before year-end W-2 processing begins. This applies especially to restaurants, bars, retailers and specialty manufacturers. The company is offering no-cost year-end payroll comparisons to Minnesota employers through December 15, 2026.
2026 is the first tax year in which employers must report qualified tips and qualified overtime separately on Form W-2. They are reported under the new Box 12 codes TP and TT, along with a Treasury tipped-occupation code in Box 14b. The amounts an employer reports set what workers can claim under the new federal deductions for tips and overtime. An employee generally cannot deduct more than the W-2 shows, and errors must be fixed with corrected W-2c forms. Employers must furnish W-2s to employees by February 1, 2027.
Minnesota employers also face several state changes on January 1, 2027:
The statewide minimum wage rises 3.99% to $11.87 per hour, and the Minneapolis minimum wage rises to $17.02. Minnesota does not allow a tip credit, so tipped staff must receive the full minimum wage before tips.
Under Minnesota’s wage-notice law, employers must give each affected employee written notice of a pay-rate change before it takes effect.
The Minnesota Paid Leave premium holds at 0.88% of wages for 2027, or 0.66% for qualifying small employers. State actuarial projections suggest an increase may be needed in 2028.
“For a lot of small employers, the tip and overtime numbers on this year’s W-2 are only as good as the earning codes someone set up last January,” said Leah Kollross, founder of Roll With Paid. “If tips were lumped together or overtime was coded as regular pay, employees could lose a deduction they’re counting on. The employer then ends up issuing corrections in February. October is the time to catch that, not tax season.”
Payroll software leaves the business as the employer, carrying the filing responsibility. Roll With Paid. instead works as an employer of record. It becomes the named W-2 employer for client staff and takes on statutory employer obligations, including payroll tax filings, W-2 issuance and state leave premiums. The client continues to direct day-to-day work. The company serves hospitality, retail, manufacturing and other specialty industries, including employers that mainstream providers have declined to serve, as well as tribally chartered enterprises.
The year-end comparison covers:
-tip and overtime earning-code mapping
-occupation coding
-wage-notice readiness for the January 1 rate changes
Paid Leave premium setup
Employers can request a review at rollwithpaid.com.
About Roll With Paid.
Roll With Paid. is a Minnesota-based payroll, HR and employer-of-record company serving employers in Minnesota and other states. Led by founder Leah Kollross and Managing Member Jen Williams, the company provides payroll, HR and compliance services for businesses in hospitality, retail, manufacturing and other specialty and regulated industries. Roll With Paid. is not a law firm or tax preparer and does not provide legal or tax advice. Learn more at rollwithpaid.com.
New federal reporting codes, a January minimum wage increase and Minnesota’s wage-notice rule converge in the final weeks of 2026. The payroll and employer-of-record firm is offering no-cost year-end comparisons to small and mid-sized employers.
2026 is the first tax year in which employers must report qualified tips and qualified overtime separately on Form W-2. They are reported under the new Box 12 codes TP and TT, along with a Treasury tipped-occupation code in Box 14b. The amounts an employer reports set what workers can claim under the new federal deductions for tips and overtime. An employee generally cannot deduct more than the W-2 shows, and errors must be fixed with corrected W-2c forms. Employers must furnish W-2s to employees by February 1, 2027.
Minnesota employers also face several state changes on January 1, 2027:
The statewide minimum wage rises 3.99% to $11.87 per hour, and the Minneapolis minimum wage rises to $17.02. Minnesota does not allow a tip credit, so tipped staff must receive the full minimum wage before tips.
Under Minnesota’s wage-notice law, employers must give each affected employee written notice of a pay-rate change before it takes effect.
The Minnesota Paid Leave premium holds at 0.88% of wages for 2027, or 0.66% for qualifying small employers. State actuarial projections suggest an increase may be needed in 2028.
“For a lot of small employers, the tip and overtime numbers on this year’s W-2 are only as good as the earning codes someone set up last January,” said Leah Kollross, founder of Roll With Paid. “If tips were lumped together or overtime was coded as regular pay, employees could lose a deduction they’re counting on. The employer then ends up issuing corrections in February. October is the time to catch that, not tax season.”
Payroll software leaves the business as the employer, carrying the filing responsibility. Roll With Paid. instead works as an employer of record. It becomes the named W-2 employer for client staff and takes on statutory employer obligations, including payroll tax filings, W-2 issuance and state leave premiums. The client continues to direct day-to-day work. The company serves hospitality, retail, manufacturing and other specialty industries, including employers that mainstream providers have declined to serve, as well as tribally chartered enterprises.
The year-end comparison covers:
-tip and overtime earning-code mapping
-occupation coding
-wage-notice readiness for the January 1 rate changes
Paid Leave premium setup
Employers can request a review at rollwithpaid.com.
About Roll With Paid.
Roll With Paid. is a Minnesota-based payroll, HR and employer-of-record company serving employers in Minnesota and other states. Led by founder Leah Kollross and Managing Member Jen Williams, the company provides payroll, HR and compliance services for businesses in hospitality, retail, manufacturing and other specialty and regulated industries. Roll With Paid. is not a law firm or tax preparer and does not provide legal or tax advice. Learn more at rollwithpaid.com.
New federal reporting codes, a January minimum wage increase and Minnesota’s wage-notice rule converge in the final weeks of 2026. The payroll and employer-of-record firm is offering no-cost year-end comparisons to small and mid-sized employers.
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Roll With Paid
Leah Kollross
612-816-1755
https://rollwithpaid.com
Leah Kollross
612-816-1755
https://rollwithpaid.com
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