Contributions will begin January 1, 2027 with benefits to begin January 1, 2028.
Employers can begin registration through the agency portal in Fall of 2026. Employers with at least one employee in Maryland are required to register. When you register, you’ll enter your federal Employer Identification Number (EIN). All sub-agencies and divisions with the same EIN will be registered together. FAMLI allows only one registration per EIN. After registration, you can grant access to a Third-Party Agent (TPA) so they can interact with FAMLI on your behalf. Only an Authorized Officer can sign the Power of Attorney to grant this access. Registered employers will automatically be enrolled in the State Plan.
If an employer is using a private plan, it will need to be authorized by the agency. Employers with a private plan will still be required to submit wage and hour reports and claims data every quarter. You’ll also be required to keep the following records for at least 5 years:
Employers are required to notify their employees of this tax throughout their employment. Employers need to provide notice to employees beginning in July 2027, six months before benefits become available, when an employee is hired, once per year on annual notice, when an employee requests leave, or when the employer knows the employee is taking leave for a qualifying reason. The FAMLI agency will create sample notices for employers to use.
MD FAMLI will be funded through contributions from both employers and employees. Contribution amounts vary based on employer size. The contribution rate is 0.9%, split equally between employers and employees (0.45% each). This rate will apply to wages paid from January 1, 2027 through December 31, 2027. Wages will be capped following the Social Security wage cap for each employee.
The FAMLI Division will determine employer size based on the total number of employees, including those working inside and outside of Maryland. All employees falling under the same federal Employer Identification Number (EIN) are counted toward a single employer size. Independent contractors will not count toward employer size. Even employers with just one employee in Maryland must comply with FAMLI requirements.
FUTA – POTENTIAL Credit Reductions
| Potential 2026 Credit Reduction |
Effective FUTA Rate |
Additional Tax Per EE (Applied to $7,000 wage base limit) | Total FUTA Tax per EE (Applied to $7,000 wage base limit) | |
|
California |
1.5% |
2.1% |
$105 |
$147 |
|
Virgin Islands |
4.8% |
5.4% |
$336 |
$378 |
*As of June, the US Virgin Islands announced that they have paid off their outstanding federal unemployment account loans. This would mean they would not have a credit reduction for 2026 as long as they do not resume borrowing and ha no outstanding balance as of November 10, 2026.
The maximum credit applied to FUTA tax is 5.4%, making the standard effective federal unemployment rate is 0.6%, or up to $42 in tax per employee. If a state has an outstanding loan with the federal unemployment trust, the credit applied to the tax rate is reduced, in turn increasing the amount of tax an employer is required to pay per employee. The credit reduction amounts are typically finalized and released in November of the current year. Once FUTA credit reductions are determined, employers in affected jurisdictions must complete Form 940’s Schedule A, Multi-State Employer and Credit Reduction Information with the annual filing, which is used to calculate additional amounts of federal unemployment tax owed due to any credit reductions for the tax year. The additional tax amount is owed at the time of filing.
ProLiant will continue to monitor updates with regards to the credit reduction determinations for the 2026 tax year.
Mileage rate change
The IRS announced it is increasing the business standard mileage rate for transportation expenses paid or incurred beginning July 1 to 76 cents per mile [Announcement 2026-11, 2026-29 IRB 49]. The previous rate of 72.5 cents per mile will still apply for travel between January 1 and June 30, 2026.
Withholding
Arkansas Department of Revenue updated their withholding tax tables retroactively to 1/01/2026. The highest wage bracket percentage has decreased from 3.9% to 3.7%.
The updates to the tables have been made in our system, retro active to 1/01/2026 as per agency guidance.
AR 2026 Withholding Tax Employer's Instructions.pdf
Withholding
The Ohio Department of Taxation has updated their withholding tax tables effective August 1, 2026. ProLiant will have these updates in our system as per the effective date.
Employer Withholding | Department of Taxation
State Unemployment
Kentucky Department of Labor has issued a new EIN format effective July 2026 as part of their system modernization project. The new EIN is 9 digits. If you have received your new EIN, please submit this to your account manager as soon as possible to prevent any reporting or deposit discrepancies.
The new portal for employers, Kentucky Unemployment Insurance Portal (KUIP) is scheduled to go live in August 2026. Existing employers will receive important credentials by mail (at employer's physical address) and in KEWES as a pop-up message. This information will include:
You'll need these credentials to access the new system.
Kentucky Unemployment Insurance Portal (KUIP) - Kentucky Career Center
NEW Paid Sick Leave Policy – coming 2027
A new law was signed May 20th, 2026, that will require employers in Virginia to provide paid sick leave to their employees through a phased rollout beginning July 1st, 2027.
Employees will accrue one hour of paid sick leave for every 30 hours worked, up to 40 accrued sick hours to use. Leave will be capped at forty hours per year, and it will be carried over year-to-year, provided that the amount of leave in an employee’s leave bank will never exceed forty hours. The law provides that accrued but unused leave is forfeited at time of separation from employment.
On July 1st, 2027, when the law goes into effect, employers with 50 or more employees will be required to provide paid sick leave. On January 1st, 2028, that threshold will drop to 25 employees. On January 1st, 2029 all employers, regardless of size, will be required to offer paid sick leave.
ProLiant will continue to monitor for additional information as we get closer to the effective date.
Code of Virginia Code - Article 2.1. Paid Sick Leave
Withholding
West Virginia has updated their withholding tax tables retroactive to January 1, 2026. The tables have been updated in ProLiant’s system to reflect this update.