Federal and State Payroll Updates 2026 and 2027

Alaska

Updated October 27, 2026

Minimum Wage Changes – Effective 7/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid family and medical leave/sick leave

• The Alaska Family Leave Act applies to public employees. Private employers are subject to earned paid sick leave provisions established under Ballot Measure 1.

Workers’ compensation

• Mandatory for all Alaska employers regularly employing 1 or more employees.

Workers’ compensation

• All Connecticut employers regularly employing 1 or more employees (full-time or part-time) need to have a policy.

Georgia

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave

• Georgia does not currently have a state-mandated paid family or medical leave program for private employers.

Workers’ Compensation

• Mandatory for all Georgia employers regularly employing 3 or more workers (including regular part-time workers and corporate officers or LLC members, though up to 5 officers/members may elect to exempt themselves using Form WC-10).

Hawaii

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid family leave/Temporary Disability Insurance (TDI)

• Hawaii requires employers to provide Temporary Disability Insurance (TDI) to cover off-the-job sickness or injury. Hawaii does not currently mandate a state paid family leave program for private employers.

Workers’ Compensation

• Mandatory for all Hawaii employers employing 1 or more employees (full-time or part-time).

Idaho

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave

• Idaho does not currently have a paid family or medical leave program private employers are required to follow.

Workers’ Compensation

• Mandatory for all Idaho businesses with 1 or more full-time, part-time, or seasonal employees (administered by the Idaho Industrial Commission, unless specifically exempt).

Illinois

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Leave (Paid Leave for All Workers Act)

• Under the Illinois Paid Leave for All Workers (PLAW) Act, nearly all covered Illinois employees earn at least 40 hours of paid leave per 12-month period, which can be used for any reason of the employee’s choosing. Separate local paid leave ordinances apply in Chicago and Cook County.

Workers’ Compensation

• Mandatory for virtually all Illinois employers operating with 1 or more employees (full-time, part-time, or seasonal).

Iowa

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave

• Iowa does not currently have a state-mandated paid family or medical leave program for private employers.

Workers’ Compensation

• Coverage is mandatory for most Iowa employers that employer 1 or more employees (coverage can be provided through commercial insurance or approved self-insurance; limited exemptions apply for certain agricultural or casual household workers).

Kansas

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave

• Kansas does not currently have a state-mandated paid family or medical leave program for private employers.

Workers’ Compensation

• A policy is mandatory for Kansas employers with total annual gross payroll exceeding $20,000 (exemptions apply to certain agricultural pursuits and qualifying corporate officers).

Kentucky

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family and Medical Leave

• Kentucky does not currently have a state-mandated paid family or medical leave program for private employers.

Workers’ Compensation

• Mandatory for all Kentucky employers with 1 or more employees subject to the Kentucky Workers’ Compensation Act (administered by the Department of Workers’ Claims under the Kentucky Education and Labor Cabinet).

Louisiana

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave

• Louisiana does not currently have a state-mandated paid family or medical leave program for private employers.

Workers’ Compensation

• Mandatory for all Louisiana employers employing 1 or more employees (including full-time, part-time, temporary, or seasonal workers, unless specifically exempt under state law).

Maine

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave (Maine PFML)

• State-mandated program providing covered employees up to 12 weeks of paid leave per year for family bonding, personal illness, family caregiving, military exigency, or safe leave. Payroll contributions began January 1, 2025, and employee benefit payments begin May 1, 2026.

Workers’ Compensation

• Mandatory for all Maine employers regularly employing 1 or more employees (administered by the Maine Workers’ Compensation Board).

Massachusetts

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave (MA PFML)

• Mandatory state program providing covered employees up to 12 to 26 weeks of paid leave for an employee’s own serious health condition, family caregiving, bonding with a new child, or military family demands. Applies to all Massachusetts employers regardless of size.

Nonprofit Retirement Savings Program (CORE Plan)

• The Massachusetts Defined Contribution CORE Plan is a state-sponsored tax-deferred and post-tax 401(k) savings plan available to small nonprofit organizations with 100 or fewer employees. The Office of the State Treasurer serves as plan sponsor and assumes primary administrative and investment oversight.

Workers’ Compensation

• Coverage is mandatory for all Massachusetts employers employing 1 or more employees (administered by the Department of Industrial Accidents – DIA).

Michigan

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave

• Michigan does not currently have a state-mandated paid family leave program for private employers. However, under the Earned Sick Time Act, covered Michigan employers must provide paid earned sick leave to eligible employees.

Workers’ Compensation

• Mandatory for nearly all Michigan employers under the Workers’ Disability Compensation Act (administered by the Workers’ Disability Compensation Agency under LEO).

**On 1/1/26, Minnesota’s minimum-wage rate will be adjusted for inflation to $11.13 an hour for all employers in the state.

Mississippi

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave

• Mississippi does not currently have a state-mandated paid family or medical leave program for private employers.

Workers’ Compensation

• Mandatory for all Mississippi employers regularly employing 5 or more employees (coverage is voluntary for employers with fewer than 5 employees, as well as for domestic, agricultural, or non-profit organization workers).

Missouri

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave

• Missouri does not currently have a state-mandated paid family or medical leave program for private employers.

Workers’ Compensation

• Mandatory for all Missouri employers with 5 or more employees (employers in the construction industry must carry coverage if they have 1 or more employees).

Montana

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave

• Montana does not currently have a state-mandated paid family or medical leave program for private employers.

Workers’ Compensation

• Mandatory for all Montana employers regularly employing 1 or more workers (including full-time, part-time, seasonal, or temporary employees, unless specifically exempt by state statute).

Nebraska

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Sick & Family Leave

• Nebraska’s Paid Sick Time requirements (Initiative 436) took effect October 1, 2025, requiring employers to provide earnable paid sick leave (up to 40 or 56 hours per year based on employer size). Nebraska does not currently mandate a paid family leave program for private employers.

Workers’ Compensation

• Mandatory for all Nebraska employers with 1 or more employees working in the regular trade, business, profession, or vocation of the employer (exemptions apply to household domestic servants and certain agricultural operations employing fewer than 10 unrelated full-time workers).

Nevada

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave

• Nevada does not currently have a state-mandated paid family or medical leave program for private employers.

State-Mandated Retirement Program (Nevada Employee Savings Trust – NEST)

• Nevada has a state-sponsored automatic-enrollment Roth IRA program. Nevada employers that have been in business for at least 3 years, employ 6 or more workers, and do not currently offer a qualified retirement plan are required by law to register and facilitate NEST. Registration deadline for eligible new businesses is June 30, 2026.

Workers’ Compensation

• Mandatory for all Nevada employers employing 1 or more workers under a contract of hire (administered by the Division of Industrial Relations – DIR, unless specifically exempt by statute). Principal contractors on construction projects are statutory employers responsible for ensuring coverage for all subcontractors and independent contractors.

New Hampshire

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave (NH PFML)

• New Hampshire offers a voluntary Paid Family and Medical Leave (NH PFML) plan providing eligible workers up to 6 weeks of wage replacement per year (60% of average weekly wage). Employers with 50 or more employees are required to collect worker premium payments through payroll deductions if employees participate or purchase an individual plan.

Workers’ Compensation

• Mandatory for all New Hampshire employers regularly employing 1 or more employees (full-time or part-time, under RSA 281-A:5).

New Jersey

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Temporary Disability Insurance (TDI) & Family Leave Insurance (FLI)

• Mandatory state-administered disability and leave programs. Temporary Disability Insurance (TDI) covers off-the-job illness, injury, or pregnancy recovery, while Family Leave Insurance (FLI) provides wage replacement for up to 12 weeks to care for a family member or bond with a new child.

State-Mandated Retirement Program (RetireReady NJ)

• Established under the New Jersey Secure Choice Savings Program Act. New Jersey employers with 10 or more employees that have been in business for at least 2 years and do not offer a qualified retirement plan are required by law to register and facilitate RetireReady NJ via automatic payroll deductions (Roth or Traditional IRAs).

Workers’ Compensation

• Mandatory for all New Jersey employers not covered by federal programs employing 1 or more employees (administered by the Division of Workers’ Compensation under N.J.S.A. 34:15-1 et seq.).

* According to the Albuquerque Journal, Santa Fe’s upcoming January 2027 increase is the first to tie future minimum-wage adjustments to both CPI and local housing costs.

**Santa Fe County and City rates are subject to a Consumer Price Index-based inflationary adjustment on March 1 of each year.

New York

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family Leave (PFL) & Disability Benefits (SDI / DBL)

• Mandatory state programs for covered New York employees. Statutory Short-Term Disability (DBL/SDI) provides wage replacement for off-the-job injuries or illnesses. Paid Family Leave (PFL) provides up to 12 weeks of job-protected paid leave at 67% of an employee’s average weekly wage (capped at 67% of the NYSAWW) for family caregiving, child bonding, or military exigencies. For 2026, the PFL employee contribution rate is 0.432% of wages (maximum annual contribution of $411.91).

State-Mandated Retirement Program (NY Secure Choice Savings Program)

• State-sponsored automatic-enrollment Roth IRA program. Private-sector employers in New York State that have been in business for at least 2 years, employ 10 or more employees, and do not currently offer a qualified retirement plan are required by law to register and facilitate automatic payroll deductions.

Sexual Harassment Prevention Training

• New York State law requires all employers with 1 or more employees to conduct annual interactive sexual harassment prevention training for all employees. Employers in NYC must also maintain training records for at least 3 years, display the required workplace posters, and distribute sexual harassment fact sheets to new hires.

Workers’ Compensation

• Mandatory for virtually all New York employers employing 1 or more full-time or part-time employees, including family member workers (administered by the NYS Workers’ Compensation Board – WCB).

North Carolina

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave

• North Carolina does not currently have a state-mandated paid family or medical leave program for private employers.

Workers’ Compensation

• Mandatory for all North Carolina businesses regularly employing 3 or more employees under Chapter 97 of the NC General Statutes (employers with 1 or more employees engaged in activities involving radiation are also required to carry coverage).

North Dakota

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave

• North Dakota does not currently have a state-mandated paid family or medical leave program for private employers.

Workers’ Compensation

• Mandatory for North Dakota employers with 1 or more employees. Coverage must be obtained directly through North Dakota Workforce Safety & Insurance (WSI), an exclusive state fund. Private insurance policies are not permitted for North Dakota coverage.

Ohio

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave

• Ohio does not currently have a state-mandated paid family or medical leave program for private employers.

Workers’ Compensation

• Mandatory for all Ohio private employers regularly employing 1 or more employees under Ohio Revised Code § 4123.01. Coverage must be secured through the Ohio Bureau of Workers’ Compensation (BWC), an exclusive state insurance fund, or through BWC-approved self-insurance.

Oklahoma

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave

• Oklahoma does not currently have a state-mandated paid family or medical leave program for private employers.

Workers’ Compensation

• Mandatory for Oklahoma employers employing 1 or more workers (administered by the Oklahoma Workers’ Compensation Commission, unless specifically exempt under state law).

Oregon

Minimum Wage Changes – Effective 7/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave (Paid Leave Oregon)

• Mandatory state program providing covered employees up to 12 weeks of paid, job-protected leave per 12-month period for family bonding, employee serious health condition, family caregiving, or safe leave. Employers with 25 or more employees contribute to program funding.

State-Mandated Retirement Program (OregonSaves)

• State-sponsored automatic-enrollment Roth IRA program required by law under ORS 178.210. All Oregon employers that do not offer a qualified workplace retirement plan must register and facilitate OregonSaves via payroll deductions. Noncompliant employers are subject to civil penalties up to $100 per employee.

Workers’ Compensation

• Mandatory for virtually all Oregon employers employing 1 or more employees in Oregon (administered by the Oregon Workers’ Compensation Division – WCD under DCBS).

Rhode Island

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Temporary Disability Insurance (TDI) & Temporary Caregiver Insurance (TCI)

• Mandatory state-administered programs. Temporary Disability Insurance (TDI) provides benefit payments for an employee’s own off-the-job illness or injury. Temporary Caregiver Insurance (TCI) provides up to 6 weeks of wage replacement benefits to care for a seriously ill family member or to bond with a new child.

State-Mandated Retirement Program (RISavers)

• State-sponsored automatic-enrollment Roth IRA program sponsored by the Rhode Island Office of the General Treasurer. All Rhode Island employers with 5 or more employees that do not offer a qualified retirement plan are required by law to register and facilitate RISavers via payroll deductions.

Workers’ Compensation

• Mandatory for all Rhode Island employers regularly employing 1 or more employees (administered under R.I. Gen. Laws Title 28, Chapters 29–38).

South Carolina

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave

• South Carolina does not currently have a state-mandated paid family or medical leave program for private employers.

Workers’ Compensation

• Mandatory for businesses that regularly employ 4 or more employees within South Carolina (administered by the South Carolina Workers’ Compensation Commission).

South Dakota

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave

• South Dakota does not currently have a state-mandated paid family or medical leave program for private employers.

Workers’ Compensation

• Mandatory for all South Dakota employers under SDCL Title 62 (administered by the Division of Labor and Management within the Department of Labor and Regulation.

Utah

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave

• Utah does not currently have a state-mandated paid family or medical leave program for private employers.

Workers’ Compensation

• Mandatory for virtually all Utah employers with a few statutory exceptions under Utah Code Ann. § 34A-2-201. Basic premium rates are established by the Utah Department of Insurance and modified based on occupational risk classifications and employer claims history.

Vermont

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave (VT-FML)

• Vermont offers a voluntary Family and Medical Leave Insurance (VT-FML) program for private employers and individual employees, providing access to wage replacement for family care, medical, and bonding leave.

State-Mandated Retirement Program (Vermont Saves)

• State-sponsored automatic-enrollment Roth IRA program sponsored by the Office of the Vermont State Treasurer. This covers Vermont employers that don’t offer a qualified workplace retirement plan are required by law to register and facilitate Vermont Saves via automatic payroll deductions at no cost to the employer.

Workers’ Compensation

• Mandatory for all Vermont employers employing 1 or more workers (administered under 21 V.S.A. Chapter 9 by the Vermont Department of Labor).

Virginia

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave (PFML)

• Virginia has enacted a state-mandated Paid Family and Medical Leave program providing eligible employees up to 12 weeks of paid leave for family caregiving, employee serious health condition, or child bonding. Payroll contributions begin April 1, 2028, with employee benefit payments starting December 1, 2028. Employers with 10 or fewer employees are exempt from the employer contribution share.

State-Mandated Retirement Program (RetirePath VA)

• State-sponsored automatic-enrollment Roth IRA program administered by Vestwell on behalf of the Commonwealth Savers Plan. Nongovernmental Virginia employers that have been operating for at least 2 years, employ 5 or more eligible employees, and do not offer a qualified workplace retirement plan are required by law to register and facilitate RetirePath VA via payroll deductions

Workers’ Compensation

• Mandatory for all Virginia employers that regularly employ more than 2 employees (3 or more full-time or part-time employees, including executive officers and LLC managers) under Va. Code § 65.2-100 et seq.(administered by the Virginia Workers’ Compensation Commission – VWC).

Washington

Minimum Wage Changes – Effective 1/1/2026 & 1/1/2027

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave (PFML)

• Mandatory state program administered by the Employment Security Department (ESD). Provides covered workers who have worked 820 hours or more in the qualifying period up to 12 weeks of paid, job-protected leave per year for family caregiving, child bonding, employee serious health conditions, or military exigencies (up to 16–18 weeks for combined medical/family leave or pregnancy complications). Funded via shared employer and employee payroll contributions.

State-Mandated Retirement Programs (Marketplace & Washington Saves)

• Washington offers the voluntary Small Business Retirement Marketplace for employers with fewer than 100 employees. Separately, the state is launching a mandatory auto-IRA program, Washington Saves (RCW 19.05), opening for enrollment in July 2027. Non-governmental employers operating in Washington for at least 2 years with a physical presence, 10,400+ total annual employee hours (~5 full-time employees), and no qualified workplace retirement plan will be required to register and facilitate payroll deductions.

Isolated Worker Safety & Harassment Prevention (RCW 49.60.515)

• Employers in retail, hotel/motel, security guard, or property services employing isolated employees (housekeepers, security guards, janitors, room service attendants) must adopt a written sexual harassment policy, provide mandatory annual prevention training, equip isolated workers with panic buttons, and maintain compliance documentation.

Workers’ Compensation

• Mandatory industrial insurance for virtually all Washington employers (administered by the Washington State Department of Labor & Industries – L&I through the monopoly Washington State Fund or certified self-insurance). Coverage is funded jointly by employer and employee hourly contributions.

West Virginia

Minimum Wage Changes – Effective 1/1/2026

Unemployment Wage Base Changes – Effective 1/1/2026

Paid Family & Medical Leave

• West Virginia does not currently have a state-mandated paid family or medical leave program for private employers.

Workers’ Compensation

• Mandatory for West Virginia employers regularly employing 1 or more workers (administered under W. Va. Code § 23-1-1 et seq. through licensed private insurance carriers or approved self-insurance).

Federal changes

Social Security Wage Base Changes

FSA Limit Changes

HSA Limit Changes

Mileage Reimbursement Changes

Transportation Benefits

Qualified Small Employer HRA (QSEHRA)

401(k), 403(b), 457 Plan Limit Changes

IRA Contribution Limits

Check out our guide to payroll processing for more information, or try out our employer payroll calculator to see how these taxes are applied in practice.