2026 Election Worker FICA Threshold: A Compliance Guide for Employers
Suppose you are a government entity or HR professional preparing for the upcoming election cycle. In that case, you are likely to have one pressing question: At what point do I need to withhold Social Security and Medicare taxes for my temporary election workers?
Here is the direct answer: The federal election worker FICA threshold for 2026 is $2,500.
This means that if you pay an election worker $2,500 or more in a calendar year, you must withhold Social Security and Medicare (FICA) taxes from the entire amount paid. If they earn $2,499 or less, generally, no FICA taxes are withheld.
While this seems straightforward, payroll compliance for election officials is rarely simple. There are reporting cliffs, inflation adjustments, and state-specific Section 218 agreements that can change the rules entirely. This article breaks down everything you need to know to remain compliant in 2026.
Managing these complexities is a core part of our expertise. At AccuPay, we specialize in Election Workers Payroll Services, ensuring that every threshold and state-specific rule is handled correctly so you don’t have to worry about compliance gaps. If you would like to simplify your payroll for the upcoming cycle, call us at (888) 815-3999 to get a free, no-obligation consultation.
How the FICA Threshold Works
Unlike standard payroll, where taxes often apply to the first dollar earned, election workers fall into a unique tax category. The IRS and Social Security Administration (SSA) recognize that these individuals are often temporary workers performing a civic duty. Consequently, there is a specific income floor below which FICA taxes do not apply.
The “First Dollar” Rule
The most critical concept to understand is that this threshold acts as a “cliff.”
- Below $2,500: If an election worker earns $2,000, you withhold $0 in FICA taxes.
- At or Above $2,500: If that same worker earns $2,500, you do not just tax the amount over the threshold. You must withhold FICA taxes on the entire $2,500.
This retroactive application can catch payroll departments off guard. Suppose a worker picks up an unexpected extra shift late in the year that pushes them over the Election Worker FICA Threshold 2026. In that case, your payroll system must be set up to catch this trigger and calculate taxes on their cumulative year-to-date earnings.
Historical Context and Inflation
The threshold is adjusted for inflation, though not necessarily every year. It moves in $100 increments based on national wage data.
- 2021–2023: $2,000
- 2024: $2,300
- 2025: $2,400
- 2026: $2,500
For 2026, the threshold has risen by $100 from the previous year. Therefore, you must update your payroll software parameters effective January 1, 2026, to reflect this new $2,500 limit.
Exceptions to the Rule: Section 218 Agreements
The federal threshold of $2,500 is the standard default. However, state and local government employers must verify if a Section 218 Agreement is in place.
A Section 218 Agreement is a voluntary agreement between a state and the Social Security Administration to provide coverage for state and local government employees. These agreements can override the federal default in two ways:
- Lower Thresholds: Some states have agreements that set the election worker threshold significantly lower (e.g., $50 a quarter or $100 a year). In these cases, you must withhold FICA taxes much sooner than the federal $2,500 limit.
- No Exclusion: If a state’s Section 218 Agreement does not explicitly exclude election workers, FICA taxes may apply from the very first dollar earned, regardless of the amount.
Actionable Tip: Do not assume the federal $2,500 limit applies to you automatically. Contact your State Social Security Administrator to review your local Section 218 coverage status.
Reporting Requirements: W-2 vs. FICA
One of the most common sources of confusion for employers is the distinction between taxation and reporting. Just because you do not withhold FICA tax does not mean you are off the hook for reporting the income.
The $600 Reporting Rule
Even if an election worker earns less than the $2,500 FICA threshold, you may still need to issue a Form W-2.
However, if the worker earns $2,500 or more, you report wages in Box 1, and you report the Social Security and Medicare wages in Boxes 3 and 5, along with the withheld taxes in Boxes 4 and 6.
No 1099s for Election Workers
A common mistake is treating election workers as independent contractors. The IRS has been clear: election workers are public officials and employees. Therefore, you should issue a Form W-2, not a Form 1099-NEC, for their compensation.
Income Tax Withholding: Mandatory vs. Voluntary
While FICA taxes are mandatory once the threshold is met, federal income tax withholding works differently.
Generally, election worker compensation is not subject to mandatory federal income tax withholding. Because the work is temporary, the IRS does not require employers to withhold income tax by default.
Nevertheless, the income is still taxable to the worker. To avoid a surprise tax bill effectively, election workers can request voluntary withholding.
- The Process: The worker must submit a Form W-4 to you.
- The Action: Once received, you begin withholding income tax based on their instructions.
- The Benefit: This helps the poll worker prepay their tax liability, which is helpful if they have other sources of income.
Summary Checklist for 2026
To ensure your organization is compliant for the 2026 tax year, follow these steps:
- Update Systems: Set your payroll software’s FICA exclusion limit for election workers to $2,500.
- Check State Rules: Verify if a Section 218 Agreement in your state mandates a lower threshold.
- Monitor Cumulative Pay: Track year-to-date earnings. If a worker exceeds the $ 2,500 threshold, trigger FICA withholding on the total amount. AccuPay Systems tracks this automatically.
- Prepare for W-2s: Remember to file W-2s for any worker earning $600 or more, even if no taxes were withheld.
Navigating payroll taxes for government entities requires precision. One small error in threshold settings can lead to significant under-withholding penalties. If you are looking for support in managing these complex compliance requirements, consider reviewing our Payroll Services for Election Workers or reading more about Government Payroll solutions to see how we can help simplify your process.