Weekly Compliance Updates

June 2026 Compliance Updates: New State Taxes & More

Written by ProLiant | Jun 22, 2026 2:15:55 PM

New Tax Updates

Maryland - Paid Family Leave

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:

    • Applications submitted and outcomes (approved/denied)
    • Benefits paid
    • Reconsideration requests and outcomes
    • Wage and hour reports
    • Employee contributions received

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.

  • Small employers: (those with fewer than 15 total employees, counting both Maryland and out-of-state employees) are only responsible for remitting 50% of the contribution rate and may withhold that amount fully from employee pay.
  • Paying the full contribution: Employers can choose to pay the full contribution amount on behalf of their employees, but there may be tax implications. Employers should consult with their business tax professional before making this decision.

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.

  • During 2027: The Division will calculate employer size each quarter based on quarterly wage and hour reports. If your quarterly total number of employees is below 15, you will qualify for the lower rate that quarter.
  • Starting in 2028: The Division will average the total number of employees across the previous 4 quarters to determine employer size. If your 4-quarter average is below 15, you will qualify for the lower rate for the entire following year.

Paid Family and Medical Leave

 

State Updates

Arkansas

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

Georgia

Withholding

The Georgia Department of Revenue has updated their withholding tax tables retroactively to 1/01/2026 in revised guide that was released in June 2026. The rate has decreased from 5.19% to 4.99%. Along with an increase to the standard deduction and dependent allowance amounts.

The updates to the tables have been made in our system, retroactive to 1/01/2026 as per agency guidance.

2026 Employer's Tax Guide

Kentucky

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:

    • An 8-digit account initiation code
    • A new, 9-digit Kentucky Employer Identification Number (KEIN)

You'll need these credentials to access the new system.

Kentucky Unemployment Insurance Portal (KUIP) - Kentucky Career Center

Virginia

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