May 2026 Compliance Updates: New State Taxes & 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

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. Therefore, these payments should not be included when reporting the wages paid to workers to IDES after July 1, 2026. 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, should continue to be included as wages when reporting to IDES.

Ohio

Local

Effective July 1, 2026:

• Mount Eaton City tax will be administered by Reginal Income Tax Administration (RITA)

• Lexington City tax will be administered by Reginal Income Tax Administration (RITA)
  
  

Utah

Withholding

Beginning June 1, 2026 the UT withholding tax has decreased from 4.5% to 4.45%