Release:    2026-1.48.0          

Update: February 9, 2026

Canada

Alberta

Income Tax – Effective February 9, 2016

Corrected an issue: when an employee works in Alberta and has maxed out CPP contributions, the total income tax was correct; however, the distribution between federal and provincial taxes was off.

United States

Colorado

Paid Family Medical Leave (PFML) – effective January 1, 2025

We corrected an issue in the PFML auto adjust logic where employer pickup amounts could be overstated in certain scenarios.

When autoAdjust is true and year-to-date wages and withholdings were already aligned between pay periods, the engine could incorrectly recalculate and double the employer pickup amount, resulting in excess imputed income and over-withholding for taxes that treat the pickup as taxable.

The calculation has been updated so that, in these no-change auto adjust scenarios, the employer pickup amount remains consistent with prior periods rather than being recalculated from total year-to-date values.

Illinois

Income Tax – effective January 1, 2026

The tax  has been updated:

• The value of a basic allowance (Form IL-W-4, Line 1) increased from $2,850 to ** $2,925.
• The value of an additional allowance (Form IL-W-4, Line 2) remains $1,000.
• The tax rate remains 4.95%.

Iowa

Income Tax – effective January 1, 2026

 Iowa 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

Kentucky

Breathitt County OLF – effective January 1, 2025

The wage base increased from $176,100 to $184,500 to match the FICA wage base. The tax rate remains 2%.

Maine

State Unemployment – effective January 1, 2026

The tax new-employer rate has increased from 2.11% to 2.23%. The wage base remains $12,000.

Unemployment Program Administrative Fund – effective January 1, 2026

The rate increased from 0.16% to 0.17%. The wage base remains $12,000.

Maryland

Income Tax – effective January 1, 2025

The tax engine has been updated to align with Maryland's online calculator:

• Added four new lower-income tiers with the following graduated rates: 2%, 3%, 4%, and 4.75%
• Updated the standard deduction for the married filing status from $3,350 to $6,700

Frederick County Tax – effective January 1, 2025

• Removed progressive bracket treatment; the applicable county rate is now applied uniformly to total taxable income based on the income threshold reached
• Updated the standard deduction for the married filing status from $3,350 to $6,700

Minnesota

Income Tax – effective January 1, 2026

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%.

Mississippi

Income Tax – effective January 1, 2026

The 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. 

Ohio

Income Tax – effective January 1, 2026

The tax supplemental rate decreased from 3.5% to 2.75%.

Unemployment Tax – effective February 9, 2026

A new 'Is Corporate Officer' option is now available on the Tax Settings tab of Employee Payroll Settings. This field will be utilized when generating the OH UCO-2QR eFile Report under Government Reporting.

Bowling Green CSD – effective January 1, 2026

The tax rate increased from 0.5% to 1.25%.

Circleville-Pickaway Twp JEDD – effective January 1, 2026

The tax rate increased from 2% to 2.5%. The credit and credit limit remain 0%.

Clinton-Massie LSD – effective January 1, 2026

The tax was reactivated with a rate of 1%.

Coldwater EVSD – effective January 1, 2026

The tax rate increased from 0.5% to 1%.

East Palestine CSD – effective January 1, 2026

The tax was deactivated and is no longer in effect for 2026.

Edon-Northwest LSD – effective January 1, 2026

The tax was deactivated and is no longer in effect for 2026.

Findlay CSD – effective January 1, 2026

The tax was reactivated with a rate of 1%.

Hanover City – effective January 1, 2026

The tax credit decreased from 100% to 0%, and the credit limit decreased from 1% to 0%. The tax rate remains 1%.

Miami Township-Dayton JEDD – effective January 1, 2026

The tax rate increased from 1.75% to 2.25%. The tax credit is 100% and the credit limit is 2.25%.

Milton-Union EVSD – effective January 1, 2026

The tax rate increased from 1.25% to 2%.

Trimble LSD – effective January 1, 2026

The tax was reactivated with a rate of 1%.

Westerville CSD – effective January 1, 2026

The tax was reactivated with a rate of 0.75%.

Oregon

Income Tax – effective January 1, 2026

The tax was updated:

• The federal tax adjustment increased from $8,500 to $8,750
• The value of an annual allowance increased from $256 to $263
• The standard deductions have changed:
• Single with fewer than 3 allowances: increased from $2,835 to $2,910
• Single with 3 or more allowances and Married: increased from $5,670 to $5,820

• The brackets and constants in the formula have changed

The supplemental tax rate remains 8%.

Oregon Transit – effective January 1, 2026

 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. 

Paid Family Medical Leave (PFML) – effective January 1, 2025

We corrected an issue in the PFML auto adjust logic where employer pickup amounts could be overstated in certain scenarios.

When autoAdjust is true and year-to-date wages and withholdings were already aligned between pay periods, the engine could incorrectly recalculate and double the employer pickup amount, resulting in excess imputed income and over-withholding for taxes that treat the pickup as taxable.

The calculation has been updated so that, in these no-change auto adjust scenarios, the employer pickup amount remains consistent with prior periods rather than being recalculated from total year-to-date values.

Rhode Island

State Unemployment – effective January 1, 2026

The 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%.

 Job Development Surcharge – effective January 1, 2026

The 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 0.21%.

State Disability (TDI/TCI) – effective January 1, 2026

The tax rate decreased from 1.3% to 1.1% and the wage base increased from $89,200 to $100,000.00.

Vermont

Income Tax – effective January 1, 2026

The 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

Virgin Islands

State Unemployment – effective January 1, 2026

The tax wage base increased from $31,100 to $32,100.