1 Release Notes 26.10.1

NetSuite for Government 26.10.1 Release Notes

Revision Date: October 07, 2026

Important:

This document summarizes the changes to NetSuite for Government between 26.10.1 and the previous release. These release notes are subject to change every week.

The 26.10.1 enhancements and changes listed in this document are not available to customers until they are upgraded to NetSuite for Government 26.10.1. Your access to these features and SuiteApps is subject to the terms of service in your NetSuite for Government contract.

Please also review the NetSuite general release notes for a comprehensive view of changes to the release. During this release period, NetSuite version is transitioning from 2026.1 to 2026.2. Customers may be on either release. The general NetSuite release notes are accessible at this link:

https://docs.oracle.com/en/cloud/saas/netsuite/ns-online-help/book_N3865324.html

NetSuite for Government Version 26.10.1 – Release Date October 07, 2026

Finance:

  • 1099: 2026 Support:
    • 1099 Reporting Code Updates:
      • The 1099 Reporting Codes available on the Account record have been updated to reflect current reporting requirements.
      • The following changes were made:
        • Added 1099-G Box 10. Family Leave Benefits
        • Renamed 1099-NEC Box 1. Non-Employee Compensation to 1099-NEC Box 1a. Non-Employee Compensation.
        • Renamed 1099-S Box 2. Gross Proceeds to 1099-S Box 2a. Total Gross Proceeds
        • Inactivated 1099-MISC Box 14. Excess Golden Parachute
      • These updates help ensure Account records use the appropriate 1099 reporting classifications while removing outdated values from future selection.

Various Fixes and Performance Improvements

  • Change Order Process:
    • Corrected an issue that could cause the Change Order process to fail with the message: “A Purchase Change Order is already being created for the selected purchase order.”
    • This message will now appear only when a valid duplicate change order is being created simultaneously for the same purchase order.
  • Refund Cash Sales:
    • Corrected an issue on Quick Code forms where the bank account on refund cash sales could not be updated and would revert to the payment method’s default bank account. The selected bank account now saves correctly.
  • Credit Card Refund CSV Import:
    • Resolved an issue that caused Credit Card Refund CSV imports to fail with the message, “Account is required.” Credit Card Refund transactions can now be imported successfully via CSV.
  • With Balancing Segments using the Specify configuration, and issue was corrected where the Cash account on a Deposit inherited its value from the Invoice exception Cash line. An Edit/Save of any impacted Deposit records will correct any transactions incorrectly coded.

Human Resources and Payroll:

  • Payroll Calculation:
    • Salary Pay by Hours:
      • Salary Pay by Hours now calculates a salary adjustment using the employee’s annual hours, the number of pay periods in the current year, Salary Adjustment Hours entered for the pay period, and the hourly rate on the employee’s effective Primary Position and Pay record. The calculated amount may be positive or negative.

        Configuration:

        How it works?
        • The system identifies the effective Primary Position and Pay record for the payroll pay period.
        • It retrieves Annual Hours and Hourly Pay Rate from that record and Periods Per Year from the related payroll Pay Period.
        • It calculates per-period hours as Annual Hours divided by Periods Per Year.
        • It subtracts period-to-date Salary Adjustment Hours, then multiplies the result by the employee’s hourly pay rate.
        • Hours are rounded using the configured Calculation Precision Value.
        Example: Annual Hours 2,912 ÷ 26 periods = 112 per-period hours. With 115 Salary Adjustment Hours at $20.00 per hour: (112 − 115) × $20.00 = −$60.00.
        Important Notes:
        • A negative result is valid when Salary Adjustment Hours exceed calculated per-period hours.
        • The calculated amount does not overwrite an amount entered on the Pay Code or Employee Pay Code.
        • Existing Pay Code and Employee Pay Code additional amounts and limits continue to apply.
        • When more than one effective Primary Position and Pay record is found, the record with the greatest End Date is used.
  • Illinois State Income Tax Calculation:
    • Illinois State Income Tax Calculation has been updated to apply the 2026 tax rates.
  • Iowa 2026 State Tax Calculation:
    • The Iowa state income tax calculation rule has been updated with the 2026 tax brackets.
    • Iowa State Income Tax Calculation now supports the 2026 Iowa withholding tables while preserving the correct method for both 2023-or-earlier and 2024-and-later Iowa W-4 forms. State Filing Status determines the W-4 form-year method; Payment Date determines the effective tax-year rate and deduction amounts.

      Note:

      A 2023 Iowa W-4 processed in a 2026 payroll continues to use the 2023-or-earlier calculation method with the 2026 tax-year tables. Payment Date does not determine the employee’s W-4 form-year method.
      2026 Calculation method:
      • For a 2024-and-later Iowa W-4, use State Filing Status Other, Married Filing Jointly or Qualifying Surviving Spouse, or Head of Household. For Married Filing Jointly or Qualifying Surviving Spouse, Spouse has earned income selects the applicable deduction column.
      • For a 2023-or-earlier Iowa W-4, use State Filing Status Single (or married but legally separated) or Married.
      • For both methods, annualize Iowa taxable wages using the related payroll Periods per Year, apply the applicable deduction and 2026 withholding rate, apply the appropriate allowance treatment, then divide the annualized result by Periods per Year and add the employee’s additional withholding amount.
        2026 Annual deduction amounts
        The 2026 Iowa withholding tax rate is 3.8 percent (0.038) for both W-4 methods.
        Allowance treatment:
        • For a 2024-and-later W-4, State Dependents/Allowances is used as the reported allowance amount.
        • For a 2023-or-earlier W-4, State Dependents/Allowances is treated as the number of claimed allowances and multiplied by $40.
        • Additional withholding continues to use the standard State Tax calculation framework and is added to or subtracted from the final per-pay-period withholding amount.
  • Ohio 2026 State Tax Calculation:
    • Ohio State Income Tax Calculation has been updated with the 2026 withholding tax brackets. The calculation uses annualized Ohio taxable wages, the employee’s State Dependents/Allowances value, and the related payroll Periods per Year.
      How it Works?
      • Calculate taxable wages (TW) as: (Ohio State Taxable Wages × Periods per Year) − ($650 × State Dependents/Allowances).
      • Use Ohio State Taxable Wages (ns4g_ohiotx_pay), State Dependents/Allowances (custentity_ns4g_taxes_statedependents), and the payroll Periods per Year field (custrecord_ns4g_payperiod_periodsperyr).
        2026 Withholding brackets
  • Louisiana State Employees Retirement System:
    • NetSuite for Government now supports the Louisiana State Employees’ Retirement System (LASERS) SOLARIS contribution-reporting workflow. The feature provides Louisiana-specific retirement setup, employee retirement records, employee retirement reporting records, contribution bucket mapping, and a fixed-length SOLARIS file generated from the reporting-period snapshot.
  • Payroll Register: Performance Enhancements:
    • The Payroll Register report has been enhanced to improve performance for larger agencies.
  • ACA Reporting:
    • ACA hire-month safe-harbor codes:
      • ACA processing now evaluates an employee’s hours in the hire month when Box 14 is 1H and Box 16 is blank. The evaluation runs after existing ACA eligibility, coverage, and code-generation processing and does not overwrite previously generated codes.
        Expected Behavior:
        When the rule applies?
        • An ACA employee record already exists for the selected reporting year.
        • The employee’s Hire Date falls within the selected ACA reporting year, and the month evaluated is the employee’s hire month.
        • Box 14 is 1H, Box 16 is blank, and there is no ACA coverage record for the month.
        Important Notes:
        • The rule does not create an ACA employee record or apply to months after the hire month.
        • The rule does not change a Box 14 value, overwrite an existing Box 16 code, or populate an All 12 Months value.
        • The system-generated 2D value addresses the majority of qualifying cases. Agencies should review individual employee circumstances and replace it when another Box 16 value is more appropriate.
  • 1094-C Full-Time Employee Count:
    • Form 1094-C Part III, column (b), Section 4980H Full-Time Employee Count for ALE Member, is now calculated from the selected Reporting Period and ALE Member’s Employee ACA records. Both system-generated and manually created or edited Employee ACA records are included in the evaluation.
      Expected Behavior:
      • The calculation includes Employee ACA records with an applicable Box 14 offer code: 1A, 1B, 1C, 1D, 1E, 1F, 1J, 1K, 1L, 1M, 1N, 1O, 1P, 1Q, 1R, 1T, or 1U.
      • A record with Box 14 code 1H is included only when the related Box 16 safe-harbor field is blank.
      • Records with Box 14 code 1G or 1S are excluded from the column (b) full-time count. A 1H record with a Box 16 safe-harbor value is also excluded.
      • The system populates All 12 Months only when the calculated full-time count is the same for all twelve months. Otherwise, it populates the individual monthly fields and leaves All 12 Months blank.
  • ACA Employee Count Determination:
    • Payroll & HR Preferences now includes ACA Employee Count Determination on the Compliance tab. The preference enables an ALE Member to select the date used consistently for monthly ACA employee-count purposes.
      Configuration:
      • Open Payroll & HR Preferences → Compliance and select ACA Employee Count Determination.
      • Choose one active ACA Employee Count Period value: 1st day of each month, 12th day of each month, or Last day of each month.
      • Use the selected determination consistently for every month of the ACA reporting year.

    Note:

    The first or last day of the first payroll period that starts during the month is not included in this release.
  • 1094-C Total Employee Count:
    • Form 1094-C Part III, column (c), Total Employee Count for ALE Member, is now calculated separately for each reporting-year month from Employee Payroll Totals. This replaces the prior 1095-C and Position & Pay record-based count.
      How it works?
      • For the Reporting Period entity, the system reads ACA Employee Count Determination from Payroll & HR Preferences. When more than one entity is selected, it uses the Payroll & HR Preferences record with the lowest internal ID.
      • For each month, the system applies the configured first, twelfth, or last calendar day and counts each employee once when an Employee Payroll Totals record for a selected entity has a related pay period that spans that date.
      • A pay period spans the count date when its Begin Date is on or before the count date and its End Date is on or after the count date. Employees with multiple payroll-total records, including supplemental payroll records, are counted once per month by Employee Entity ID.
      • When all monthly column (c) values match, the system populates All 12 Months and clears the individual monthly values. Otherwise, it populates the individual monthly values and leaves All 12 Months blank.
  • ACA Employee Record Generation by Employee Type:
    • Payroll & HR Preferences now supports automatic Employee ACA record generation by Employee Type. This option identifies employees who are full-time for ACA purposes but do not submit timecards, regardless of their calculated ACA Reportable Hours.
      Configuration:
      • Open Payroll & HR Preferences → Compliance → Affordable Care Act Reporting.
      • Select one or more values in Generate Employee ACA by Employee Type, a multi-select Employee Type field (custpage_ns4g_payrollhrprefs_acatype). The field is positioned after ACA Reportable Hours and before Generate Employee ACA by Employee Group.
      • Maintain available Employee Types at Setup → Accounting → Setup Tasks → Employee Related Lists.
      How it Works?
      • If no Employee Types are selected, the Employee Type evaluation is skipped.
      • The system evaluates active employees whose Employee Type matches a selected value. An employee is active during the Reporting Period when Hire Date is before the Reporting Period End Date and the HR/Payroll Termination Date is after the Reporting Period Begin Date or is blank.
      • For an eligible employee, the system generates an Employee ACA record without requiring the employee to meet the existing ACA Reportable Hours threshold.
      • The system does not create a duplicate record when the employee already qualifies through ACA Reportable Hours or Employee Group logic.
  • 1094-C Minimum Essential Coverage Offer Indicator:
    • Form 1094-C Part III, column (a), Minimum Essential Coverage Offer Indicator, is now calculated from the selected Reporting Period and ALE Member’s Employee ACA records, including system-generated and manually created or edited records.
      Expected Behavior:
      • The coverage-offer count includes Employee ACA records with applicable Box 14 offer codes: 1A, 1B, 1C, 1D, 1E, 1F, 1J, 1K, 1L, 1M, 1N, 1O, 1P, 1Q, 1R, 1T, or 1U.
      • A record with Box 14 code 1H and a blank corresponding Box 16 field is excluded from the coverage-offer count.
      • For each month, the system divides the coverage-offer count by the calculated Part III, column (b), full-time employee count. The month is marked Yes when the result is at least 95 percent.
      • The system marks All 12 Months Yes only when every monthly result is Yes; otherwise, it retains the individual monthly indicators.
      • When the 98% Offer Method is selected, Part III, column (b), is not required.
  • Payroll Payables:
    • Balance payroll payables by Balance Sheet Department:
      • A new Balance Payroll Payables: Use Balance Sheet Department preference is available under Payroll & HR Preferences → Fund Allocation. When enabled, payroll payable balancing entries use the Balance Sheet Department configured in NS4G System Setup rather than the department determined by the existing allocation hierarchy.
        Configuration:
        • Open Payroll & HR Preferences → Fund Allocation for the payroll batch entity.
        • Select Balance Payroll Payables. Existing payable balancing logic remains unchanged.
        • Select Balance Payroll Payables: Use Balance Sheet Department to apply the configured NS4G System Setup Balance Sheet Department. This option is available only when Balance Payroll Payables is selected.
        Expected Behavior:
        • When Balance Payroll Payables is selected and Use Balance Sheet Department is not selected, payables continue to balance by the originating department through the existing allocation hierarchy.
        • When both preferences are selected, only the Department value is set to the configured Balance Sheet Department. Existing fund allocation and funding determination remain unchanged.
        • The option applies to employer benefits, pre-tax deductions, taxes, and post-tax deductions.
        • Credit Fund continues to match Debit Fund. Project, Program, Grant, Custom Segments, and other subledger values remain excluded from this payable-balancing determination.
        • The Balance Sheet Department may be blank; processing continues using existing null-department behavior.
        Reporting and regression scope:
        • Payroll Posting Report and Vendor Bill processing now reflect the selected payroll payable balancing logic. Existing behavior for checks, direct deposit, vendor bills, hour codes, premium hour codes, and accrued hour codes remains unchanged unless the new preference is enabled for payable balancing.

Various Fixes and Performance Improvements