--- title: "June 2025 Compliance Updates: New State Taxes, Minimum Wage Changes, & More" description: Everything HR and payroll professionals and employers will need to stay up-to-date, including legislative decisions and developments and more. image: https://blog.proliant.com/hubfs/03%20-%20Blog%20Images/Pre-2023%20Assets%20%5BDo%20Not%20Delete%5D/proliant-compliance-updates.jpg --- [![Proliant - Print Logo - No Strokes](https://blog.proliant.com/hubfs/01%20-%20Website/Logos/Proliant%20-%20Print%20Logo%20-%20No%20Strokes.svg "Proliant - Print Logo - No Strokes")](https://www.proliant.com) [Request Meeting](https://www.proliant.com/request-meeting) ** ** **Payroll** **Talent** **Workforce Management** **Benefits** **Platform** **Integrations** **ProLiant Mobile** Your employees can stay connected. **Anytime, anywhere**. ![proliant-mobile-mockup-mega-menu](https://blog.proliant.com/hubfs/01%20-%20Website/4%20-%20Main%20Pages/Home/proliant-mobile-mockup-mega-menu.png "proliant-mobile-mockup-mega-menu") [![Proliant - Print Logo - No Strokes](https://blog.proliant.com/hubfs/01%20-%20Website/Logos/Proliant%20-%20Print%20Logo%20-%20No%20Strokes.svg "Proliant - Print Logo - No Strokes")](https://www.proliant.com) [Request Meeting](https://www.proliant.com/request-meeting) ** ** **Payroll** **Talent** **Workforce Management** **Benefits** **Platform** **Integrations** **ProLiant Mobile** Your employees can stay connected. **Anytime, anywhere**. ![proliant-mobile-mockup-mega-menu](https://blog.proliant.com/hubfs/01%20-%20Website/4%20-%20Main%20Pages/Home/proliant-mobile-mockup-mega-menu.png "proliant-mobile-mockup-mega-menu") Search **Menu** ** ** [Request Meeting](https://www.proliant.com/request-meeting) ![](https://blog.proliant.com/hubfs/03%20-%20Blog%20Images/Pre-2023%20Assets%20%5BDo%20Not%20Delete%5D/proliant-compliance-updates.jpg) [Compliance](https://blog.proliant.com/compliance-updates/tag/compliance) | 4 min read # June 2025 Compliance Updates: New State Taxes, Minimum Wage Changes, & More [![ProLiant](https://blog.proliant.com/hubfs/Logos/Color%20Proliant/P%20logo%20Glassdoor.jpg)](https://blog.proliant.com/compliance-updates/author/proliant) Written by [ProLiant](https://blog.proliant.com/compliance-updates/author/proliant) Jul 7, 2025 12:06:47 PM ## **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](https://paidleave.maryland.gov/pages/default.aspx) #### Minnesota – Paid Family Leave Effective: January 1, 2026 ![](https://blog.proliant.com/hs-fs/hubfs/Minnesota-png.png?width=1488&height=535&name=Minnesota-png.png) **** **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.  Premiums are due up to the social security wage base limit. **Employee count**: The employee count is the largest number of Minnesota employees reported by an employer on a single wage detail report during the four-quarter period that ended September 30 of the prior year. When the program launches in 2026, this will be the highest number of Minnesota employees reported in a single quarter between October 1, 2024 and September 30, 2025. If this count is 30 or fewer employees, the employer may qualify for a reduced small employer premium rate. Independent contractors and self-employed individuals are not included in this count. Employers who qualify for the reduced small employee rate are responsible for half of the standard employer contribution. Individuals are covered by Paid Leave if they work 50 percent or more of the year in Minnesota. [Employers / Minnesota Paid Leave](https://mn.gov/deed/paidleave/employers/) ## **State Updates** Minimum Wage Changes Effective July 1, 2025 - Chicago, IL - $16.60 - Alameda, CA: $17.46 - Berkeley, CA: $19.18 - Emeryville, CA: $19.90 - Fremont, CA: $17.75 - Los Angeles City, CA: $17.87 - Los Angeles City, CA: $22.50 (hotel and airport workers) - Los Angeles County, CA (unincorporated areas): $17.81 - Milpitas, CA: $18.20 - Pasadena, CA: $18.04 - San Francisco, CA: $19.18 - Santa Monica, CA: $17.81 - Long Beach, CA - $25.00 (hotel workers) - West Hollywood, CA $20.22 (hotel workers) - District of Columbia - $17.95 - Portland, OR - $16.30 (metro) - Oregon - $15.05 ## Alabama Overtime exemption is ending as of June 30th 2025. The Alabama state income tax exemption applicable to overtime wages ends on June 30, 2025. After this date, any amounts paid/received as overtime compensation are subject to income tax. The agency has confirmed that overtime wages earned on or before June 30 but not paid until July 2025 will still qualify for the exemption. Exempt overtime wages earned on or before June 30 but not paid until July 2025 may be reported on the July 2025 Form A-6 or the September Form A-1 if quarterly filing. The ALOT earnings codes will be inactivated as of 6/30/2025. Exempt overtime wages are required to be reported with the June/Q2 filings. And exempted overtime wages for the year will be reported in Box 14 of the W-2 using “EX OT WAGES” as the indicator. Exempt overtime wages should not be included in Box 16 of the W-2. [https://www.revenue.alabama.gov/individual-corporate/overtime-pay-exemption-amended/](https://www.revenue.alabama.gov/individual-corporate/overtime-pay-exemption-amended/) ## Alaska Mandated Paid Sick Leave Policy – **effective July 1, 2025** Employers in Alaska are required to provide paid sick leave for injury, illness, or family care. Employees are to accrue one hour of sick time for every 30 hours worked. This accrual rate ratio applies regardless of whether the employee works regular or overtime hours, hours at different rates, or hours across multiple pay periods. Salary employees exempt from overtime are only required to be credited up to 40 hours of work per leave for the accrual ratio. Therefore, the accrual ratio would only apply to the first 40 hours that a salary-exempt employee works in a work week. Employers with 15 or more employees are required to provide up to 56 hours of sick time per year. Employers with 14 or less employees are required to provide up to 40 hours of sick time per year. Under this law, employees can carry a sick leave balance from one year into the next. There is no maximum carryover; their sick leave balance can exceed the accrual and usage rate limit. Employees can cash out unused accrued time at the end of the year, but this cannot be mandated. Employees must be able to carry over unused time. Employees that are rehired within six months of ending initial employment must have their accrued sick time reinstated. Employees in Alaska can use paid sick leave for the following reasons: - Injury - Illness - Care for a family member - Receive care or legal help related to domestic violence, sexual assault, or stalking If the employee is out for more than three consecutive workdays, the employer can ask for a signed note from a healthcare professional. However, the employer may not ask the employee for details. Employers must inform their employees of the required sick leave policy and begin setting the accrual limits to track earned and used sick leave time. [Ballot Measure 1 FAQ](https://labor.alaska.gov/lss/ballot-1-faq-2025.html) ## Georgia GA Withholding has revised the 2025 withholding method. The state decreased its flat income tax rate to 5.19%, from 5.39%, effective July 1st, 2025. While this change is retroactive to January 1, employers are directed to implement the new withholding rate as of July 1st. Employees can reconcile their withholding tax amounts with their personal income tax filings. This rate has been updated in the ProLiant system as of July 1, 2025. [Learn More](https://aboutblaw.com/biuK) ## Virginia VA WTH Standard deduction increases from $8500 à $8750 effective July 1, 2025   ### About ProLiant *ProLiant puts the human in human resources. We provide a fully integrated, cloud-based HCM solution that simplifies payroll and HR processes. 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