--- title: "May 2025 Compliance Updates: New State Taxes & Minimum Wage Changes" 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) # May 2025 Compliance Updates: New State Taxes & Minimum Wage Changes [![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) May 28, 2025 10:29:51 AM ## **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)   ## **State Updates** Minimum Wage Changes Effective July 1, 2025 Alaska - $13.00 California - Pasadena - $18.04 - Milpitas - $18.20 Oregon - $15.05 ## 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) ## Idaho Updated withholding method – retroactive to January 1, 2025 -- **System updates already in place On April 28, 2025 Idaho released the 2025 withholding tables for the 2025 tax year. The flat tax rate has been decreased to 5.3%. The state allowance has been increased to $3,868 annually (previously $3,600). The amount of tax-free income used in the percentage method increased to $30,000 for married employees and $15,000 for single employees (up from $29,200 and $14,600 in 2024). The tax tables in ProLiant’s system has been updated with this information. ## Missouri Mandated Paid Sick Leave Policy – effective May 1, 2025 Employers in Missouri must provide earned paid sick time to eligible employees, regardless of the number of active employees. Employees are to accrue one hour of sick time for every 30 hours worked. Employees are to begin accruing paid sick time as of May 1st, 2025. Employees are entitled up to 80 unused hours of earned paid sick time carried over to the next 12-month period. Alternatively, an employer may pay out up to 80 unused hours of an employee’s accrued earned paid sick time at the end of each 12-month period and provide the employee with an amount of earned paid sick time that meets the requirements of the law available for the employee’s immediate use at the beginning of the subsequent year. Only hours worked in Missouri accrue earned paid sick time. Section 290.600 defines "employee" under the paid sick time law is "any individual employed in this state by an employer". An employee can use their "earned paid sick time" for the following reasons: - They or a family member have a mental or physical illness, injury, or health condition. - They or a family member require medical care, a medical diagnosis, or treatment, as well as receiving preventative medical care services. - Their place of employment has been ordered closed by a public official due to a public health emergency. - They need to care for a child whose school district has been ordered closed by a public official due to a public health emergency. - They need to be absent to attend to matters relating to domestic violence, sexual assault, or stalking Records relating to earned and used sick time must be maintained by the employer for a minimum of three years. [Proposition A - Paid Sick Time Benefits | Missouri Department of Labor and Industrial Relations](https://labor.mo.gov/dls/proposition-a-paid-sick-time-benefits-faqs) [Missouri Revisor of Statutes - Revised Statutes of Missouri, RSMo Chapter 290](https://revisor.mo.gov/main/OneChapter.aspx?chapter=290) ## Utah Updated withholding method – effective June 1, 2025 Utah updated its withholding guide, decreasing the income tax rate to 4.5% from 4.55%, effective June 1, 2025. The base allowance used in the formulas increased to $450 for single employees and $900 for married employees (up from $440 and $880). The exemptions from wages in the formulas increased to $9,107 for single employees and $18,213 for married employees (up from $8,826 and $17,652). These updates will be active in ProLiant’s system as of the June 1st effective date.                                                                                                                      \ [Publication 14 Withholding Tax Guide](https://aboutblaw.com/bhW0) ### About ProLiant *ProLiant puts the human in human resources. We provide a fully integrated, cloud-based HCM solution that simplifies payroll and HR processes. The company serves small to large clients in multiple industries in all 50 states and is committed to providing the highest quality customer service in the industry.* ### Subscribe to Blog - [Recent](https://blog.proliant.com/compliance-updates/may-2025-compliance-updates-new-state-taxes-minimum-wage-changes#recent) - [Topics](https://blog.proliant.com/compliance-updates/may-2025-compliance-updates-new-state-taxes-minimum-wage-changes#topics) - [Archive](https://blog.proliant.com/compliance-updates/may-2025-compliance-updates-new-state-taxes-minimum-wage-changes#archive) - [Benefits Administration (1)](https://blog.proliant.com/compliance-updates/tag/benefits-administration) - [Compliance (11)](https://blog.proliant.com/compliance-updates/tag/compliance) - [Industry News (2)](https://blog.proliant.com/compliance-updates/tag/industry-news) - [Tax Services (1)](https://blog.proliant.com/compliance-updates/tag/tax-services) [More...](https://blog.proliant.com/compliance-updates/may-2025-compliance-updates-new-state-taxes-minimum-wage-changes#) - [June 2026 (1)](https://blog.proliant.com/compliance-updates/archive/2026/06) - [May 2026 (1)](https://blog.proliant.com/compliance-updates/archive/2026/05) - [April 2026 (1)](https://blog.proliant.com/compliance-updates/archive/2026/04) - [March 2026 (1)](https://blog.proliant.com/compliance-updates/archive/2026/03) - [February 2026 (1)](https://blog.proliant.com/compliance-updates/archive/2026/02) - [January 2026 (1)](https://blog.proliant.com/compliance-updates/archive/2026/01) - [December 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/12) - [October 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/10) - [September 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/09) - [August 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/08) - [July 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/07) - [May 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/05) - [April 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/04) - [March 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/03) - [February 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/02) - [January 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/01) - [December 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/12) - [November 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/11) - [October 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/10) - [September 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/09) - [August 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/08) - [July 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/07) - [June 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/06) - [May 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/05) - [April 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/04) - [March 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/03) - [February 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/02) - [January 2024 (2)](https://blog.proliant.com/compliance-updates/archive/2024/01) - [December 2023 (1)](https://blog.proliant.com/compliance-updates/archive/2023/12) - [October 2023 (1)](https://blog.proliant.com/compliance-updates/archive/2023/10) - [September 2023 (1)](https://blog.proliant.com/compliance-updates/archive/2023/09) - [August 2023 (2)](https://blog.proliant.com/compliance-updates/archive/2023/08) - [July 2023 (2)](https://blog.proliant.com/compliance-updates/archive/2023/07) - [June 2023 (1)](https://blog.proliant.com/compliance-updates/archive/2023/06) - [May 2023 (1)](https://blog.proliant.com/compliance-updates/archive/2023/05) - [April 2023 (1)](https://blog.proliant.com/compliance-updates/archive/2023/04) - [February 2023 (2)](https://blog.proliant.com/compliance-updates/archive/2023/02) - [January 2023 (5)](https://blog.proliant.com/compliance-updates/archive/2023/01) - [December 2022 (3)](https://blog.proliant.com/compliance-updates/archive/2022/12) - [November 2022 (5)](https://blog.proliant.com/compliance-updates/archive/2022/11) - [October 2022 (5)](https://blog.proliant.com/compliance-updates/archive/2022/10) - [September 2022 (3)](https://blog.proliant.com/compliance-updates/archive/2022/09) - [August 2022 (1)](https://blog.proliant.com/compliance-updates/archive/2022/08) - [July 2022 (1)](https://blog.proliant.com/compliance-updates/archive/2022/07) - [May 2022 (2)](https://blog.proliant.com/compliance-updates/archive/2022/05) - [September 2019 (1)](https://blog.proliant.com/compliance-updates/archive/2019/09) - [August 2019 (2)](https://blog.proliant.com/compliance-updates/archive/2019/08) - [May 2019 (2)](https://blog.proliant.com/compliance-updates/archive/2019/05) - [March 2019 (1)](https://blog.proliant.com/compliance-updates/archive/2019/03) - [January 2019 (2)](https://blog.proliant.com/compliance-updates/archive/2019/01) - [December 2018 (1)](https://blog.proliant.com/compliance-updates/archive/2018/12) - [September 2018 (1)](https://blog.proliant.com/compliance-updates/archive/2018/09) - [August 2018 (1)](https://blog.proliant.com/compliance-updates/archive/2018/08) - [June 2018 (2)](https://blog.proliant.com/compliance-updates/archive/2018/06) - [August 2017 (1)](https://blog.proliant.com/compliance-updates/archive/2017/08) - [April 2017 (1)](https://blog.proliant.com/compliance-updates/archive/2017/04) - [July 2016 (1)](https://blog.proliant.com/compliance-updates/archive/2016/07) - [December 2015 (1)](https://blog.proliant.com/compliance-updates/archive/2015/12) - [August 2015 (2)](https://blog.proliant.com/compliance-updates/archive/2015/08) [More...](https://blog.proliant.com/compliance-updates/may-2025-compliance-updates-new-state-taxes-minimum-wage-changes#) Previous Story [← April 2025 Compliance Updates: New State Taxes & Minimum Wage Changes](https://blog.proliant.com/compliance-updates/april-2025-compliance-updates-new-state-taxes-minimum-wage-changes) [** ](https://blog.proliant.com/compliance-updates) Next Story [June 2025 Compliance Updates: New State Taxes, Minimum Wage Changes, & More →](https://blog.proliant.com/compliance-updates/june-2025-compliance-updates-new-state-taxes-minimum-wage-changes-more) ** ## No Comments Yet Let us know what you think [![proliant-white-logo-no-strokes](https://blog.proliant.com/hs-fs/hubfs/0%20-%20Proliant%20Branding/ProLiant%20Logos/proliant-white-logo-no-strokes.png?width=205&height=40&name=proliant-white-logo-no-strokes.png "proliant-white-logo-no-strokes")](https://www.proliant.com/) **Headquarters** 1100 Abernathy Road, Suite 850 Atlanta, GA 30328 877.896.9523 [Need Help?](https://www.proliant.com/contact-us) [Login](https://www.readypayonline.com/Proliant/Login/Login.aspx?) Copyright © 2022 Proliant, Inc. All Rights Reserved. #### Solutions [Applicant Tracking & Recruitment](https://www.proliant.com/applicant-tracking-recruitment) [Time & Labor Management](https://www.proliant.com/time-labor-management) [HR & Benefits Administration](https://www.proliant.com/hr-benefits-administration) [Employee Onboarding](https://www.proliant.com/onboarding) [Online Payroll Services](https://www.proliant.com/payroll-services) [Payroll Tax Services](https://www.proliant.com/payroll-tax-services) [Performance Management](https://www.proliant.com/performance-management) [ReadyPay Today](https://www.proliant.com/readypaytoday) [Learning Management System](https://www.proliant.com/learning-management-system) #### Who We Serve [Your Industry](https://www.proliant.com/your-industry) [Integrations](https://www.proliant.com/integrations) [Partners](https://www.proliant.com/partners) #### Why Proliant [About Us](https://www.proliant.com/about-us) [News](https://blog.proliant.com/inthenews) [Careers](https://www.proliant.com/careers) [Automation](https://www.proliant.com/payroll-automation) [Workflows](https://www.proliant.com/hr-workflows) [Services](https://www.proliant.com/services) #### Legal [Legal](https://www.proliant.com/legal-notices) [Terms](https://www.proliant.com/terms-of-use) [Privacy](https://www.proliant.com/privacy-policy) [Form 1095-C Notice](https://www.proliant.com/employee-1095c-notice) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "ProLiant", "url" : "https://blog.proliant.com/compliance-updates/author/proliant" }, "dateModified" : "2025-05-28T14:29:51.045Z", "datePublished" : "2025-05-28T14:29:51.000Z", "headline" : "May 2025 Compliance Updates: New State Taxes & Minimum Wage Changes", "image" : [ "https://blog.proliant.com/hubfs/03%20-%20Blog%20Images/Pre-2023%20Assets%20%5BDo%20Not%20Delete%5D/proliant-compliance-updates.jpg" ], "mainEntityOfPage" : { "@id" : "https://blog.proliant.com/compliance-updates/may-2025-compliance-updates-new-state-taxes-minimum-wage-changes", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.proliant.com/hubfs/00%20-%20Proliant%20Branding/ProLiant%20Logos/Proliant%20-%20Web%20Logo.svg" }, "name" : "ProLiant, Inc." } } ```