Timeline

When will this be released? January 8, 2026 5-6 PM PST

Is there downtime for this release? No

Benefits

Secure 2.0 Section 603: Support for Corrective Rothification Method Added 

We've added support for a second, IRS-accepted method for applying Secure 2.0 §603 Roth treatment to catch-up contributions. In addition to the existing proactive behavior introduced in the 2025.10.2 release on October 24, clients can now choose a corrective method that more precisely controls when rothification begins. 

A new global option allows you to select how the engine determines when catch-up contributions to traditional 401(k), 403(b), and 457 plans are converted to Roth when you have a mix of Roth and non-Roth benefits set up in your payroll calculation.

 Proactive method (original behavior) 

The engine considers combined pre-tax and Roth employee deferrals when evaluating the standard elective deferral limit. Once the combined total reaches the standard limit, any additional catch-up contributions are forced to Roth. When there are both Roth and traditional benefits in the same payroll calculation, the engine counts the Roth benefit amounts toward the standard limit first. Afterwards, the engine applies the standard 401(k) limits in the order in which they are processed. 

Payroll information: 

• Traditional 401(k) YTD: $24,000 
• Roth 401(k) YTD: $0 
• Total YTD: $24,000
• Current traditional 401(k): $2,000 
• Current Roth 401(k): $500 
• Total current: $2,500 

Thresholds: 

• Combined regular limit: $24,000 + $2,500 = $26,500 > $24,500
• Catch-up limit: $24,000 + $2,500 = $26,500 ≤ $32,500

Headroom: 

• Pre-tax headroom = $24,500 − $24,000 = $500 
• Total headroom = $32,500 − $24,000 = $8,500 

Engine result (proactive): 

• Benefit amount Roth = $500 (the Roth benefit amount reaches the combined standard limit first, leaving $0 left in the limit for the traditional 401(k) contribution) 
• Benefit amount pre-tax = $0 
• Auto-Roth = $2,000 ($2,500 − $500).

Corrective method (new behavior) 

The engine evaluates the standard limit using pre-tax deferrals only, ignoring Roth amounts for that determination. Rothification begins only after pre-tax deferrals reach the standard limit, while the combined pre-tax + Roth total is still capped by the applicable catch-up limit.

 Key characteristics of the corrective method: 

• Pre-tax contributions may continue up to the standard limit even if Roth contributions already exceed it.
• Once the pre-tax standard limit is reached, additional employee deferrals are forced to Roth. 

Once the combined pre-tax + Roth total reaches the catch-up limit, all further employee deferrals are returned as 0. 

U.S. - Updated Taxes

Iowa

Iowa State Tax Updated Taxes

We updated the Iowa State Tax effective January 1, 2026. Iowa has since released the revised Form IA W-4 and updated the “Married filing jointly & Qualifying Surviving Spouse” filing status into two distinct values:

• Married filing jointly, M 
• Qualifying Surviving Spouse, QS 

Reference: Iowa Department of Revenue

Minnesota

Minnesota State Tax updated 

Effective January 1, 2026, the Minnesota State Tax was updated: The withholding brackets were updated The value of an annual withholding allowance increased from $5,200 to $5,300 The non-resident withholding threshold increased from $14,950 to $15,300 The supplemental tax rate remains 6.25%. 

Reference: Minnesota Department of Revenue 

Mississippi

Mississippi State Tax updated 

Effective January 1, 2026, the Mississippi State Tax rate for wages above $10,000 decreased from 4.4% to 4%. The standard deduction amounts for each filing status remain the same for 2026. 

Reference: Mississippi Department of Revenue 

Ohio

Bowling Green CSD (8701) Tax rate updated 

Effective January 1, 2026, the Bowling Green CSD (8701) Tax rate increased from 0.5% to 1.25%. 

Reference: Ohio Department of Taxation 

Circleville-Pickaway Twp JEDD Tax rate updated 

Effective January 1, 2026, the Circleville-Pickaway Twp JEDD Tax rate increased from 2% to 2.5%. The credit and credit limit remain 0%.

Reference: RITA 

Clinton-Massie LSD (1402) Tax reactivated 

Effective January 1, 2026, the Clinton-Massie LSD (1402) Tax was reactivated with a rate of 1%. Reference: Ohio Department of Taxation

Coldwater EVSD (5402) Tax rate updated 

Effective January 1, 2026, the Coldwater EVSD (5402) Tax rate increased from 0.5% to 1%. 

Reference: Ohio Department of Taxation

East Palestine CSD (1505) Tax disabled 

Effective January 1, 2026, the East Palestine CSD (1505) Tax was deactivated and is no longer in effect for 2026. 

Reference: https://tax.ohio.gov/business/employer-withholding

Edon-Northwest LSD Tax disabled 

Effective January 1, 2026, the Edon-Northwest LSD (8603) Tax was deactivated and is no longer in effect for 2026.

Reference: Ohio Department of Taxation

Findlay CSD (3204) Tax reactivated 

Effective January 1, 2026, the Findlay CSD (3204) Tax was reactivated with a rate of 1%. Reference: Ohio Department of Taxation.

Hanover City Tax updated 

Effective January 1, 2026, the Hanover City Tax credit decreased from 100% to 0%, and the credit limit decreased from 1% to 0%. The tax rate remains 1%. 

Reference: Official Documentation

Milton-Union EVSD (5505) Tax rate updated 

Effective January 1, 2026, the Milton-Union EVSD (5505) Tax rate increased from 1.25% to 2%. Reference: Ohio Department of Taxation. 

Trimble LSD (0505) Tax reactivated 

Effective January 1, 2026, the Trimble LSD (0505) Tax was reactivated with a rate of 1%. Reference: Ohio Department of Taxation

Westerville CSD (2514) Tax reactivated 

Effective January 1, 2026, the Westerville CSD (2514) Tax was reactivated with a rate of 0.75%. Reference: Ohio Department of Taxation 

Oregon

Oregon Transit Tax rate reverted by petition 

Oregon passed HB 3991 to increase the Oregon Transit Tax rate to 0.2% effective January 1, 2026, and this rate increase was added to the engine on November 14, 2025. However, the Oregon Department of Revenue has paused implementation of the increase while a voter referral petition is under review and has directed employers to continue withholding at the 0.1% rate. From the Oregon Department of Revenue: 

In a special session in 2025, the Legislature adopted amendments to ORS 320.550 to increase the rate to two-tenths of 1 percent or .002 beginning January 1, 2026. After the special session, petitioners began collecting signatures for Initiative Petition 302, which would refer HB 3991 to Oregon voters. On December 12, 2025, petitioners submitted signatures to the Oregon Secretary of State to refer the bill to the voters. While signatures are being validated, the DOR is pausing implementation of the rate increase.

Please continue to withhold at the rate of one-tenth of 1 percent or .001. 

Therefore, the rate has been updated to 0.1% effective January 1, 2026. Symmetry will continue to monitor the final determination of the petition and update the engine as needed. 

References: 

• Oregon Statewide Transit Tax 
• Initiative Petition 302 

Rhode Island 

Rhode Island State Unemployment Tax updated 

Effective January 1, 2026, the Rhode Island State Unemployment Tax was updated: The main wage base increased from $29,800 to $30,800 The high tier wage base increased from $31,300 to $32,300 The new employer rate remains 1.21%. 

Reference: 2026 Tax Rates for Unemployment Insurance and Temporary Disability Insurance

Rhode Island Job Development Surcharge updated 

Effective January 1, 2026, the Rhode Island Job Development Surcharge was updated: The main wage base increased from $29,800 to $30,800 The high tier wage base increased from $31,300 to $32,300 The new employer rate remains 0.21%. 

Reference: https://dlt.ri.gov/press-releases/2026-tax-rates-unemployment-insurance-and-temporary-disability-insurance 

Rhode Island TDI/TCI Tax name and rate updated 

Effective January 1, 2026, the Rhode Island TDI/TCI tax rate decreased from 1.3% to 1.1% and the wage base increased from $89,200 to $100,000.00. Additionally, we updated the tax name from "Rhode Island SDI" to "Rhode Island TDI/TCI" to align to how the agency refers to this tax, since it is for Temporary Disability Insurance (TDI) and Temporary Caregiver Insurance (TCI). 

Reference: Official Documentation

Vermont

Vermont State Tax updated 

Effective January 1, 2026, the Vermont State Tax was updated: The tax tables and brackets (page 8) have been updated The value of withholding allowance increased from $5,300 to $5,400 

Reference: Vermont 2026 Income Tax Withholding Instructions, Tables, and Charts 

Minnesota Paid Leave (MN FLI)

Starting in January 2026, Paid Leave will ensure Minnesotans can take the time they need to be there for some of life's most important moments – like welcoming a child, recovering from a serious illness, or caring for a loved one. https://paidleave.mn.gov/

When Paid Leave begins for Minnesotans in 2026, the premium rate will be 0.88 percent.

The premium rate is a percentage of an employee's wages that will be collected by the state from employers. The premiums will be split between employees and their employers. Employers must pay at least 50 percent of the total premium and can deduct the remainder from employee pay. Employers may also choose to pay up to 100 percent of the premium for their employees. Small employers pay a reduced premium rate. The maximum contribution from employees in this case is the same as an employee of a large employer.

Value

Maintain compliance.

Audience

Payroll Administrator 

Examples

To configure the employee and employer contributions, navigate to the PAYROLL_SETUP page and edit your Minnesota registration details. At the bottom of the page, set the appropriate rates in the Miscellaneous parameters for EMPLOYEE_CONTRIBUTION_PERCENTAGE, MN_FLI_METHOD, and QUALIFIED_SMALL_EMPLOYER.

Items Removed

N/A

Appendix: Bugs Resolved 

Functional

508(C) Compliance

N/A