Timeline
When will this be released?
December 18th, 2025 5-6 PM PST
Is there downtime for this release?
No
December 2025 Supplemental Information
Supplemental information has been added to the December 2025 release to reflect newly issued agency guidance.
Upcoming Change: Maine & Delaware PFML 50/50 Contribution Split
Per agency guidance, Maine and Delaware Paid Family and Medical Leave (PFML) programs will be updated to reflect a 50/50 employer–employee contribution split, effective January 1, 2026.
Previously, the engine was configured such that the employer paid 100% of the premium by default. With this enhancement, the engine will now apply an even default split of the total premium between employer and employee for both states.
These settings are deprecated and replaced by the new 50/50 default split.
State-specific details:
- Maine:
- Total PFML premium rate: 1.0%
- Default split: 0.5% employer / 0.5% employee
- Delaware:
- Total PFML premium rate: 0.8%
- Default split: 0.4% employer / 0.4% employee
Example 1:
A Maine employer processes payroll for an employee earning $2,000 in a pay period.
- Total PFML premium (1.0%): $20
- Employer share (0.5%): $10
- Employee share (0.5%): $10
- The engine will now automatically calculate and split these amounts without manual setup.
Example 2:
A Delaware employer onboarding new employees for 2026 no longer needs to configure custom PFML percentages, as the default employer and employee contributions will correctly apply at 0.4% each to a total of .8%.
PFML employer "pick-up" taxation added
Effective January 1, 2026, if an employer pays more than the employer’s required PFML share on behalf of an employee, the excess is taxable income to the employee (“pick-up”contribution). This functionality has been added to the following PFMLs:
- Colorado Paid Family and Medical Leave Insurance (FAMLI)
- Minnesota Paid Leave (PFML)
- Oregon Paid Family and Medical Leave (PFML)
- Washington Paid Family & Medical Leave (PFML)
Please note: this legislation also applies to Massachusetts, Maine, and Delaware.
The PFML employer pick-up is treated as taxable wages and may be subject to certain limits, like Social Security or state unemployment wage caps. To handle this correctly, two new parameters were added:
- EMPLOYER_PICKUP_CONTRIBUTION_QTD – total pick-up this quarter
- EMPLOYER_PICKUP_CONTRIBUTION_YTD – total pick-up this year
These keep track of how much employer pick-up has already been applied in previous payrolls.
- If you provide these totals, the system will:
- Calculate the pick-up for the current pay period
- Add it to prior QTD/YTD totals to get a cumulative amount
- Apply all wage limits (federal, state, local) correctly
- Return taxable wages that follow all legal limits for the quarter and year
- Even if you don’t provide them, the system will still calculate taxable wages for the current period. But for full compliance and accurate reporting, supplying the QTD and YTD totals is recommended.
The "Taxable Pick-up Contribution" represents the amount of the employer's contribution to the employee's share of the PFML tax that is treated as taxable income for the current pay period. It will be included in gross subject wages and subject wages for impacted taxes below:
Colorado PFML
Colorado Paid Family and Medical Leave Insurance was introduced in 2023. The total tax rate is 0.88%: the employee portion is 0.44% and the employer portion is 0.44% for employers with 10 or more employees. For 2026, the wage base is $184,500. See attached release notes for additional details.
Minnesota Paid Leave (PFML)
Minnesota Paid Family and Medical Leave (PFML) is a new tax effective January 1, 2026. The total tax rate is 0.88%: the employee portion is 0.44% and the employer portion is 0.44%. For 2026, the wage base is $185,000.See attached release notes for additional details.
Oregon Paid Family and Medical Leave (PFML)
The Oregon Paid Family and Medical Leave Tax was introduced in 2023. The total tax rate is 1%: the employee tax is 0.60% and the employer tax is 0.40%. For 2026, the wage base is $184,500. See attached release notes for additional details.
Washington Paid Family & Medical Leave (PFML)
Washington Paid Family Medical Leave (PFML) is a tax supported by the STE. Washington employers are required to make contributions under PFML law. Contributions are based on the size of the employer's workforce.
As of January 1, 2026, the premium rate is 1.13%. The default split according to Washington Paid Family & Medical Leave is 71.43% paid by the employee, and 28.57% paid by the employer (as long as the business has 50 or more employees). It uses the Social Security wage base, which is $184,500 for 2026.
Businesses with fewer than 50 employees are not required to pay the employer portion of the premium for 2026. However, the employer can optionally elect to cover all or some of the employee's portion (no matter the number of employees). See attached release notes for additional details.
U.S. - Updated Taxes
Federal
Railroad Unemployment Tax updated
Effective January 1, 2026, the Railroad Unemployment Tax monthly wage base increased from $2,065 to $2,150.
Upcoming Federal Payroll Tax Changes (OBBBA)
- September 2nd, 2025: the Treasury Department released a draft of preliminary occupations that customarily receives tips.
- October 2nd, 2025: original date mandated by OBBBA for the Treasury Department to issue an official list of occupations that customarily and regularly receive tips. This date has passed, and issuance is delayed due to the ongoing federal government shutdown. For updates, see the Federal Register notice and Regulations.gov docket.
- October 22, 2025: public comments due
- October 23, 2025: telephonic-only hearing held (link)
- October 30, 2025: Symmetry Payroll Forms updated with draft W-4 for preview
- November 6, 2025: IRS published draft Publication 15-T
- November 19, 2025: STE updated with 2026 Federal Income Tax calculation logic
- November 21, 2025: The IRS has issued guidance on approximating and reporting the amount of qualified overtime and tips for eligible individuals for tax year 2025 here.
Colorado
Colorado State Tax updated
Effective January 1, 2026, the Colorado State Tax has been updated. The standard allowance has increased from $10,000 to $11,000 for employees with a filing status of "married filing jointly or qualifying surviving spouse," and from $5,000 to $5,500 for other employees.
The tax rate remains 4.4% for 2026.
Iowa
Iowa State Tax update
Effective January 1, 2026, the Iowa State Tax annual deductions have increased for all filing statuses:
- Other (including single) increased from $12,000 to $13,000
- Head of Household increased from $18,050 to $19,500
- Married Filing Jointly increased from $24,050 to $26,000
The flat tax rate remains 3.8% and the supplemental rate remains 3.8%.
https://revenue.iowa.gov/media/53/download
New York
Yonkers City Tax update for 2026
Effective January 1, 2026, the Yonkers City Withholding Tables and Methods have been revised for the Exact Calculation Method (Method II).
For employees earning at least $1,077,550 per year, the Top Income Tax Rates Method (Method III) has not changed for 2026. Additionally, the following will remain unchanged:
- The Yonkers resident supplemental wages tax rate will remain 1.95975% for residents and 0.5% for nonresidents.
- The value of an annual deduction allowance will remain $7,400 for Single and $7,950 for Married
- The value of an annual exemption allowance will remain $1,000
https://www.tax.ny.gov/pdf/publications/withholding/nys50_t_y.pdf
New York State Tax update for 2026
Effective 1 January 2026, the New York State Withholding Tables and Methods have been updated for the Exact Calculation Method (Method II).
For employees earning at least $1,077,550 per year, the Top Income Tax Rates Method (Method III) has not changed for 2026. Additionally, the following will remain unchanged:
- The supplemental wages tax rate will remain 11.70%
- The value of an annual deduction allowance will remain $7,400 for Single and $7,950 for Married
- The value of an annual exemption allowance will remain $1,000
https://www.tax.ny.gov/pdf/publications/withholding/nys50_t_nys.pdf
Ohio
Ohio State Unemployment Tax rate updated
Effective January 1, 2026, the Ohio State Unemployment Tax new employer rate increased from 2.7% to 2.85%. The wage base remains $9,000.
https://dam.assets.ohio.gov/image/upload/jfs.ohio.gov/ouio/uctax/2026RateDetails.pdf
Oklahoma
Oklahoma State Tax updated
Effective January 1, 2026, the Oklahoma State Tax withholding tables have been updated.The supplemental tax rate decreased from 4.75% to 4.5%. The value of an annual allowance remains $1,000.
Oregon
Oregon Paid Family and Medical Leave updated
Effective January 1, 2026, the Oregon Paid Family and Medical Leave wage base increased from $176,100 to $184,500. The total premium tax rate remains 1%.
https://www.oregon.gov/employ/NewsAndMedia/Documents/2025-11-18_Tax_Rate_2026_Press_Release.pdf
Oregon State Unemployment Tax wage base increased
Effective January 1, 2026, the Oregon State Unemployment Tax wage base increased from$54,300 to $56,700. The new employer rate remains 2.4%.
Wyoming
Wyoming Workers' Compensation average wage updated
Effective January 1, 2026, the Corporate Officer Quarterly Average Wage increased from $14,768.01 to $15,398.52.
Monthly/Quarterly Corporate Officer Statewide Average Wage
U.S. – New Taxes
Ohio
Coopers Hawk JEDD Added
Effective January 1, 2026, Green Township and the City of Cheviot have established a new JEDD with a tax rate of 2%. Employees working within the JEDD area will be subject to this tax.
https://cheviot.org/tax-office/
U.S. – Deactivated Taxes
The following section covers taxes that are no longer in effect. These will no longer be returned or calculated after the affected payroll dates!
Ohio
Oregon Toledo JEDZ Tax tax disabled with 0% rates
Tax Credit Information:
Credit factor: 0%. Credit limit: 0%.
Effective January 1, 2026, the Oregon Toledo JEDZ Tax is deactivated.
https://toledo.oh.gov/pay-taxes
Lake Township Toledo JEDD Tax tax disabled with 0% rates
Effective January 1, 2026, the Lake Township Toledo JEDD Tax is deactivated.
https://toledo.oh.gov/pay-taxes
Shapefile Updates
Ohio
Madison Township JEDD Tax shapefile updated
We've updated the Madison Township JEDD Tax shapefile to reflect the new boundaries per the county's official map.
North Pickaway County Harrison Twp Vlgs of Ashville South Bloomfield JEDD Tax shapefile updated
We've updated the North Pickaway County Harrison Twp Vlgs of Ashville South Bloomfield JEDD Tax shapefile to reflect the new boundaries per the county's official map.
Zanesville - Newton JEDD Tax shapefile updated
We've updated the Zanesville - Newton JEDD Tax shapefile to reflect the new boundaries as per the Muskingum County GIS Administrator's map.
Zanesville - Perry Township JEDD Tax shapefile updated
We've updated the Zanesville - Perry Township JEDD Tax shapefile to reflect the new boundaries as per the Muskingum County GIS Administrator's map.
Zanesville - Springfield JEDD Tax shapefile updated
We've updated the Zanesville - Springfield JEDD Tax shapefile to reflect the new boundaries as per the Muskingum County GIS Administrator's map.
Oregon
Portland - 2025 October Update Shape File Data
The Portland area Transit Districts, Metro, and Urban Growth Boundary shapefiles have been updated to reflect the October 2025 update.
Pennsylvania
Municipal and school district shapefiles updated
The Pennsylvania municipalities and school districts shapefiles have been updated using the latest data published by the Pennsylvania Geospatial Data Clearinghouse (PASDA)from October 2025.
U.S. – Federal Benefit Updates for 2026
Effective January 1, 2026, the following federal benefit limits have been updated. Items that have changed for 2026 have been marked with bold text.
| Limit Type | 2025 Limit | 2026 Limit |
| 401(k), Roth 401(k), 403(b), Roth 403(b), 457(b), Roth 457(b) | ||
| Annual contribution limit | $23,500 | $24,500 |
| Catch-up contribution amount | $7,500 | $8,000 |
| Annual compensation limit | $350,000 | $360,000 |
| FSA, FSADC | ||
| Annual FSA contribution limit | $3,300 | $3,400 |
| Dependent care FSA limit | $5,000 for individual or MFJ, $2,500 for MFS | $7,500 for individual or MFJ, $3,750 for MFS |
| HSA | ||
| Maximum annual contribution for an eligible individual with self-only coverage | $4,300 | $4,400 |
| Maximum annual contribution for an eligible individual with family coverage | $8,550 | $8,750 |
| Catch-up contribution for individuals age 55 and over | $1,000 | $1,000 |
| SIMPLE IRA | ||
| Annual compensation limit | $350,000 | $360,000 |
| Annual contribution limit | $16,500 | $17,000 |
| Increased deferral limit (SECURE 2.0 Provision 117) | $17,600 | $18,100 |
| Catch-up contribution amount | $3,500 | $4,000 |
| Increased SECURE 2.0 Catch-up Amount (useIncreasedSimpleIraLimit ) | $3,850 | $3,850 |
| Non-elective additional contribution limit | $5,000 | $5,300 |
| Traditional IRA / Roth IRA | ||
| Annual contribution limit | $6,000 | $6,000 |
| Catch-up contribution amount | $1,000 | $1,100 |