April 2026 Compliance Updates: New State Taxes, Federal Updates, & More

New Tax Updates

Maryland - Paid Family Leave

DELAYED: Contributions have been delayed until January 1, 2027 with benefits to begin January 1, 2028. This was confirmed through an agency newsletter received 4/08/2025 that confirmed the final bill passed to delay the start of this tax.

Paid Family and Medical Leave

Federal Updates

Federal Form 944 – extended to 2027

In the April IRS industry call, the agency confirmed the Employer’s Annual Federal Tax Return, Form 944 will continue to be accepted without expiration. We continue to review updates on this matter for any additional changes.

State Updates

Illinois

IL-SUI

Beginning on July 1, 2026, employer contribution payments to a worker’s 401(k) plan made on and after that date are no longer considered to be “wages” for purposes of the Illinois Unemployment Insurance Act and will not be included in wages as of this date. Employee contributions to their 401(k) plan will continue to be considered “wages.”

Any employer contribution payments to a worker’s 401(k) plan made prior to July 1, 2026, will continue to be included as wages.

Please contact IDES at (800) 247-4984 with any questions or review the Illinois Administrative Code.