.png)
The latest release of Sage 100 Payroll 2.26.1 introduces several enhancements focused on compliance support, banking flexibility, and improved user experience. While these updates may seem small at first glance, they provide meaningful improvements for payroll administrators managing day-to-day processes.
A new Print Nontaxable Overtime check box has been added to Check Printing. This enhancement supports the “no tax on overtime” policy under the One Big Beautiful Bill Act (OBBBA) for tax years 2026–2028.
When enabled, the nontaxable overtime portion of FLSA wages can now be displayed directly on employee check stubs, helping organizations improve transparency and support compliance reporting requirements.
This update provides payroll teams with additional flexibility as new overtime tax regulations are implemented.
Sage 100 Payroll 2.26.1 also introduces a new Reference Code field within Direct Deposit Maintenance.
This enhancement supports financial institutions that require a reference code within ACH file header records (record type 1, field positions 87–94). By adding this capability, businesses can better align ACH processing with bank-specific requirements and reduce potential file rejection issues.
For organizations managing direct deposit across multiple banking institutions, this update helps simplify payment processing and improve compatibility.
To improve usability, Sage has updated the field order within Deduction Code Maintenance.
The Reset Balance at Year End check box now appears directly after the Standard Limit field, creating a more intuitive workflow when configuring deduction settings.
While subtle, interface improvements like this help streamline payroll setup and reduce navigation friction for payroll administrators.
Sage 100 Payroll 2.26.1 continues Sage’s focus on practical enhancements that support compliance, improve payroll processing, and simplify everyday tasks for users.
From overtime reporting updates to ACH file flexibility and workflow improvements, these changes help organizations manage payroll more efficiently while preparing for evolving regulatory requirements.
Contact Blytheco for Next Steps
To take advantage of these new enhancements and ensure your payroll system remains current and compliant, reach out to your Blytheco Sage 100 Consultant to schedule your Sage 100 Payroll 2.26.1 update. The Blytheco team can help you install the latest release, review new functionality, and ensure your payroll processes are optimized for the upcoming changes and improvements. For any other questions, contact Blytheco.
With over 25 years of experience in ERP business consulting, Tyi Whitcomb has dedicated her career to driving business transformations and optimizing processes for organizations across various industries. She brings a wealth of expertise in leading complex ERP implementations, managing cross-functional teams, and delivering solutions that align seamlessly with strategic goals. Known for her problem-solving acumen and ability to cultivate strong client relationships, Tyi excels at helping businesses realize their full potential through customized ERP strategies. Throughout her career, she has successfully navigated and led roles in consulting, operations, and leadership, always with a focus on transformative business outcomes. Connect with Tyi on LinkedIn.
