Human Resources

! 2026 TAX WITHHOLDING UPDATES DUE TO OBBBA !

Public Law 119-21, known as the One Big Beautiful Bill Act (OBBBA), was signed into law on July 4, 2025. The OBBBA contains new and enhanced tax deductions including:
• New income tax deductions for qualified overtime compensation and tips and qualified passenger vehicle loan interest;
• An enhanced deduction for seniors (individuals age 65 and older);
• An increase in the standard deduction and the child tax credit; and
• An increase in the limit on the itemized deduction for state and local taxes.

If you want to account for these deductions in the income tax withheld from your paychecks, you must submit a new 2026 Form W-4, Employee’s Withholding Certificate, to the payroll department. You can find the form on the IRS website at https://www.irs.gov/pub/irs-pdf/fw4.pdf. Please note: If you do not submit a new Form W-4, withholding will continue based on your previously submitted form.

Before submitting a 2026 Form W-4, you should carefully read the instructions included with the form and consult a tax professional, if needed. To figure your updated withholding amount, you can use the updated Deductions Worksheet on page 4 of the Form W-4 and input your total in Step 4(b) of the 2026 Form W-4.

The IRS’s tax withholding estimator (https://www.irs.gov/individuals/tax-withholding-estimator) has been recently updated for some of the deductions but your estimate might not be accurate for all deductions yet. To effectively use the estimator, it is helpful to have a copy of your most recent pay statement and tax return.

To figure your updated withholding amount, you should use either the updated Deductions Worksheet or the estimator, but not both. If you choose to update your withholding for 2026, you should recheck and update your withholding at the beginning of 2027. In most instances, your Form W-4 stays in effect until you submit a new one to the payroll department.

! IMPORTANT HEALTH COVERAGE TAX DOCUMENTS !

What you need to know:
Barron Collier Companies “Company” under the Affordable Care Act (ACA) is an Applicable Large Employer (ALE) required to furnish Form 1095-C to full-time employees. If you were a full-time employee during calendar year 2026 this notice explains how you may request a copy of your Form 1095-C under the alternative method for furnishing Form 1095-C.

How to request your Form 1095-C:

For active employees:
If you are currently an active employee, you can access and download your Form 1095-C directly through Employee Self Service (ESS).

• Log in to Employee Self Service (ESS).

• Navigate to: My Forms → Form 1095-C.

• Download and save or print your form for your records.

For former employees or those who prefer a mailed copy:
If you are no longer employed by the company or would like a copy mailed to you, you may request your Form 1095-C by contacting the HR department.

• Email: hr@barroncollier.com

• Mailing Address: Barron Collier Companies, Attn: HR Department, 2600 Golden Gate Parkway, Naples, Florida 34105

• Telephone: (239) 262-2600

We will furnish your Form 1095-C no later than the later of:

1. January 31 of the year following the calendar year to which the form relates, or

2. 30 days after we receive your request.

Important deadlines:

• This notice is posted on our website by the deadline for furnishing statements. Date of posting: February 1, 2026.

• This notice will remain available through October 15, 2026.

Why this matters:
Form 1095-C shows whether Barron Collier Companies offered you health coverage and whether you were enrolled in it. You do not need to attach the form to your tax return, but you should keep it for your records.

If you have questions about accessing or requesting your Form 1095-C, please contact us at the number or email above.

The annually adjusted Internal Revenue Service Standard Mileage Rate for business miles driven after December 31, 2025 will increase to 72.5 cents per mile.  Therefore, effective, January 1, 2026, please use this rate to compute expense reimbursements for business auto mileage.

Accordingly, business miles driven before January 1, 2026 should continue to use the rate of 70.0 cents per mile to compute expense reimbursements for business auto mileage.

This notice is to inform you about an important update to your retirement savings plan under the SECURE 2.0 Act final regulations, which has introduced new provisions impacting Roth contributions for the upcoming Plan Year 2026.

Effective for Plan Year 2026, the SECURE 2.0 Act made changes that required Retirement Plan participants with prior-year FICA wages over $150,000 (adjusted for inflation) to make age-based catch-up contributions on a Roth basis only. Additionally, plans could allow a higher catch-up limit for Retirement Plan participants who attain age 60 through 63 during the calendar year.

This IRS rule will affect you if your FICA wages (reported in box 3 of Form W-2) exceeded $150,000 (indexed for inflation) in the 2025 calendar year.

Below are the key updates to help you plan your retirement savings.

• Beginning in 2026: If you meet the FICA wage threshold, any catch-up contributions you make must be designated as Roth (after-tax) contributions.
• Tax Considerations: Roth contributions offer the benefit of tax-free withdrawals in retirement, but the income tax at the time of contribution remains. With these changes, you may have more opportunities to plan for your retirement in a tax-advantaged way.
• Standard catch-up limit: For comparison, the standard catch-up limit for those age 50 or older (but not yet 60) is $8,000 for 2026. If you are in the 60–63 age range, you can contribute up to $11,250 in enhanced catch-up for plan year 2026. This is in addition to the $24,500 standard employee deferral limit.

What You Need to Do:

• Review Your Contribution Preferences: Review your contribution deferral elections during open enrollment. If you wish to increase your contributions to take advantage of the catch-up opportunity you can adjust in open enrollment, for the plan year 2026.
• No Action Is Needed: If you are already making catch-up contributions and meet the FICA criteria, the payroll system will automatically convert your elected catch-up deferral contributions to Roth catch-up contributions beginning in 2026.

If you have any questions, please don’t hesitate to contact the HR Department.