As we step into 2026, Moulton & Hardin is building on the momentum of our successful 2025 communication initiatives — including The Source newsletter and our popular Monthly HCM Webinar Series.
Our goal is simple: deliver even more value, insight, and connection to our clients.
We’re excited to announce that beginning this month, The Source will expand to include articles, timely updates, employee spotlight features, and important reminders from our Benefits Division. This enhanced collaboration allows us to bring you more relevant, actionable information in one convenient place.
Whether you partner with us for Benefits, the OneSource HCM Platform, or a strategic combination of both for a fully synergistic, integrated partnership, this expanded newsletter is designed to keep you informed, engaged, and ahead of what’s next.
January's Webinar:
Leveraging OneSource to Communicate with Your Team
Have you been looking to improve employee engagement, visibility, and operational communication? Wondering how to get a message to your entire employee base? This session will provide actionable insights you can use right away.
As a valued client, we want you get the most out of your HCM platform, and in this webinar, we’ll walk through real-world use cases and best practices for:
✔ Events
✔ Pop-Up Messaging/Announcements
✔ Mass Communication
✔ SMS Messaging via Twilio
✔ Company Hub Dashboard
Save your seat today — be sure to register even if you can't attend so that you will receive a recording of the session.
Employee benefits are undergoing a significant transformation in 2026. Rising health care costs, evolving pharmaceutical trends, legislative changes and shifting worker expectations are reshaping employee benefits. Understanding these developments is critical for employers seeking to attract and retain talent while managing benefits costs effectively.
This article explores five key trends shaping employee benefits this year:
Rising Health Care Costs:Health care costs have been growing at an alarming rate in recent years, and they’re not slowing down.
Popularity of GLP-1 Drugs:GLP-1 drugs are a major driver of rising health care costs.
The OBBBA:This bill includes a broad set of changes for employee benefit plans, most of which take effect in 2026, such as expanded access to HSAs, increased limits and tax credits for dependent care FSAs, and a new savings "Trump Account" for children.
New Specialty Drugs: High-cost, high-impact treatments are reshaping the pharmaceutical industry, with specialty drugs now accounting for the vast majority of new drug approvals
This year has the potential to be pivotal for employee benefits, marked by escalating health care expenses, groundbreaking drug therapies and new legislative mandates.
— To read the full article, click the button below —
With more than seven years at M&H, Melinda Capes has become a trusted cornerstone of our Benefits and OneSource operations. After spending 15 years in resort management, Melinda brought her exceptional organization, service mindset, and operational expertise to M&H — and has been elevating the client experience ever since.
Bridging Benefits & OneSource
Often known as “the bridge keeper between our Benefits and OneSource,” Melinda plays a critical role in supporting Open Enrollment for clients utilizing the OneSource HCM platform. She manages complex data migration between OneSource and insurance carriers to ensure seamless workflows, serves as the primary liaison for employees and dependents, and oversees garnishment management. Her work streamlines processes and removes administrative burdens from HR teams.
A Word from Leadership
Operations Manager Emily Dziedzic shares:
“Melinda has been an incredible asset to our team for more than seven years. Her integrity, work ethic, and unwavering commitment to our customers set a daily standard of excellence. She consistently goes above and beyond to ensure exceptional service for both clients and their employees — all while bringing a sharp wit and wonderful sense of humor that makes even the busiest days brighter. Melinda plays an integral role in making the magic happen for our Benefits and HCM clients, and we’re truly grateful for her impact.”
Life Beyond the Office
Outside of work, Melinda is a proud mom to two married daughters and grandmother to three grandchildren. Raised in Lavonia, Georgia in a family of Harley-Davidson enthusiasts, she’s checking off a bucket-list dream this August by attending the Sturgis Motorcycle Rally with her brother. Melinda also enjoys painting landscapes and flowers and has a passion for “chasing waterfalls,” exploring many of Georgia’s 700+ recognized waterfalls.
Proud to Spotlight Melinda
Melinda’s expertise, dedication, and personality make her an invaluable part of the M&H team — and we’re proud to spotlight her this month.
2026 Unemployment Rate Notices
This is especially important!
Please send us your Unemployment Rate Notices.
We need this information as soon as possible. Keep in mind, you may be required to log in to your employer unemployment portal with your state agency to retrieve your tax rate notice. Many states no longer send out paper copies in the mail.
Failure to provide your unemployment rate updates to M&H OneSource may result in inaccurate wage and tax reporting to state agencies, which may also result in penalties and interest.
Below are links to a few state portals that many of our customers use. If your company has Unemployment accounts in other states not listed below, be sure to send us your rate for each state! If you need assistance locating the employer portal for other states, please send an email to support@mh1s.com
W-2forms were mailed on January 9th to employees who did not consent to electronic delivery, as well as to all terminated employees. Employees that opted in to receive their W-2 electronically can download it now — They will not receive a paper copy in the mail.
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The W-2s were mailed to the employee's address on file at the time of printing. W-2s sent to incorrect addresses may be returned to your company by USPS.
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How to Download an Employee's W-2
Type "W2" in the search box and click on the top result.
Locate the employee in the list, check the box next to their name, and click the download button at the top of the screen. Copy B,2,C is the employee copy. Click the "Download PDF" button to save the W-2 to your computer, and you can then email the file or print it for the employee.
Secure 2.0 Act: Roth Catch-Up
Beginning January 1, 2026, all catch-up contributions made my employees who meet both conditions below must be Roth (after-tax) contributions:
The employee is 50 years of age or older, and
Their Medicare-subject wages for the prior calendar year are $145,000 or higher. If an employee is assigned to multiple EINs, the employee's Medicare-subject wages from all of their EINs will be combined, and that amount is used to determine if they are considered a high wage earner.
This applies to 401(k), 403(b), and 457(b) retirement plans.
It is not optional.
This change requires updates to be made to your payroll account as the change does not occur automatically. If you would like us to update the settings to allow the Roth catch-up change, please send an email to Support at support@mh1s.com
If you have a file that is submitted to your carrier, please let us know if they need an update to the file to indicate the catch-up amounts.
OBBBA: Tips & Overtime
The One Big Beautiful Bill (OBBB) Act allows employees to deduct certain tip income and the overtime premium portion of wages from federal taxable income. There is no change to payroll calculations – Overtime and tips continue to be taxable in payroll.
Overtime & Taxation
Deductible Portion: Only the extra half (premium) of time-and-a-half (e.g., the $10/hr extra on $20/hr pay) is deductible, not the entire overtime amount. State/union premiums don't count.
Deduction Limits: Up to $12,500 annually ($25,000 for joint filers).
Income Phase-Out: Deduction disappears for those earning over $150,000 ($300,000 joint).
Eligibility: For non-exempt W-2 employees earning FLSA-mandated overtime.
FLSA Overtime: For the tax year 2025, Box 14 of Form W-2 will be populated with FLSA Overtime earnings for all customers. The line item will be listed as "FLSA OT". Please note, the W2 will report only the premium portion of overtime. Should you wish to opt out of this feature, please send an email request to support@mh1s.com.
Tips: The IRS has released additional guidance as of 11/21/2025. Box 7 on Form W-2 can be utilized for reporting Tips and no additional reporting on the W2 will be utilized.
Employees: May deduct up to $25,000 in eligible tip income on their federal tax return, reducing taxable income.
Tips themselves are still subject to FICA and potentially state/local taxes — the federal income tax benefit comes via the deduction at tax time, not a change to payroll taxation.
2026 Mileage Rate: 72.5¢
The IRS has increased the mileage rate from 70¢ to 72.5¢. The rate does not automatically update in the system, so if you would like us to update it for you, please send an email to Support at support@mh1s.com
2025 Q4 Tax Packages
The tax packages should be ready by the end of this week! These tax packages can be found easily by following this path in the menu:
Payroll > Reports > Taxes > Tax Documents
We will post a pop-up announcement as soon as they have been loaded.
Did you know Spider-Man has a winter jacket made entirely of Mediterranean flatbread?
It's a pita parka
Moulton & Hardin, Inc., 394 S. Milledge Avenue, Suite 103, Athens, GA 30605
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