The purpose of this article is to apprise you of pending changes from tax authorities, such as new tax jurisdictions, agency updates, rate changes, and more.  To keep you informed of ongoing tax compliance measures we are providing the following details regarding upcoming/ongoing changes. 

• NEW and/or ACTION REQUIRED: The items highlighted below require additional attention.

Federal and State Tax Updates:

• *NEW* - Alabama Withholding
  • If a filing status for the EE is not provided isolved will default to Single Claiming no Personal Exemptions.
• Florida Unemployment
  • The state is implementing a new system for reporting UI Tax.  Employdrive is working with the agency to ensure a smooth transition to the new service which is scheduled to go live for the Fall of 2026.
• Georgia Unemployment
  • The state is updating its system for reporting UI Tax.  Employdrive is working with the agency to ensure a smooth transition to the new service which is scheduled to go live for 4Q26.
• *NEW* - Indiana Unemployment
  • Indiana is requiring employers to submit additional information regarding employees with the 4Q26 filings.  This information includes job title, hours paid, reporting unit info and apprenticeship/internship employment. We are currently working with isolved to confirm this information will be added to the reports for 4Q26 and will provide additional information on how to confirm your employees data includes the required information.
• Kentucky Unemployment
  • The state is implementing a new system for reporting UI Tax.  Employdrive is working with the agency to ensure a smooth transition to the new service which is scheduled to go live on August 17th 2026.
  • ACTION REQUIRED: The Agency has issued new KY Employer Identification Numbers to all active accounts.  Please forward this information to taxes@employdrive.com and active your account to authorize Employdrive as your TPA.  Click here for additional information.
• *NEW* - Maine Withholding
  • Effective 1/1/26 Maine has increased the standard deduction for single taxpayers from $12,450 to 12,850 and for married taxpayers from $27,500 to $28,550 as well as revising the withholding tables.
  • Employers should encourage their Maine EE's to review their withholding exemptions and and submit a new exemption form if changes are desired.
• Maryland Paid Leave
  • Maryland Paid Leave contributions will commence 1/1/2027, in anticipation of this change Employers with EE's working in Maryland should register for a Paid Leave Account and review the EE Notice requirements.
  • Employdrive will begin sending portal invitations to clients in November.
• Massachusetts Paid Leave
  • The state has passed legislation to shift ER contributions from Medical Leave to Family Leave effective 1/1/27.  This change in structure was designed to mitigate the impact of recent IRS guidance on the tax treatment of PFML benefits. Additional information will be released to clients impacted by the change in 4Q26.
• Michigan Unemployment
  • The Michigan Unemployment Insurance Agency (UIA) is transitioning to a new unemployment tax and benefits system called MiUI, which will replace the current Michigan Web Account Manager (MiWAM). MiUI is being launched in two parts, with Tax functions now live, and Benefits functions scheduled to be available later in 2026.
  • ACTION REQUIRED: If you have not assigned Employdrive as your TPA please do so as soon as possible or email taxes@employdrive.com for assistance.
• Texas Unemployment
  • The state is implementing a new UI electronic reporting system.  Employdrive will be reaching out to all impacted clients in 3Q26 with information regarding creating your Employer account and designating Employdrive as your TPA.
• Virginia Unemployment:
  • The state is updating the UI electronic reporting system to improve security.
  • ACTION REQUIRED: Please visit the website to create/update to the ID.me access method to ensure uninterrupted access to your account.
• *NEW* - Washington PFL
  • WA PFL will be completing business size determinations in October. If the agency determines your business size has changed for the purposes of WA PFL you will be issued a notice.  Please forward this notice to Employdrive to confirm your rate for 2027.
• Wisconsin Unemployment
  • The state is implementing a new UI electronic reporting system.  Employdrive will be reaching out to all impacted clients in 3Q26 with information regarding creating your Employer account and designating Employdrive as your TPA.

Local Tax Updates:

• *NEW* - Kentucky
  • Salem, Livingston County
    • Added an occupational License fee of 1% effective 10/1/26, increasing the total tax rate to 2% (1% Livingston County + 1% Salem)
• *NEW* - Ohio
  • Miami TWP-Dayton JEDD
    • Increased the tax rate from 1.75% to 2.25% effective 1/1/26.
    • Clients impacted by this change have been notified.
  • Union TWP-Milford JEDD II, III, IV
    • Updated local reciprocity rule calculation for residents and non-residents effective 7/9/26.
    • Allow exemption for MSRRA effective 1/1/26.