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:

• 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.
• *Update* 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 has been delayed and is now scheduled to go live for early spring 2027.
• *NEW* Idaho Withholding
  • The state has decreased the withholding allowance to $0.00 and revised the withholding tables, effective 1/1/26. Visit the ID State Tax Commission site for more information regarding the change.
  • Per the agency, withholding does not need to be adjusted to 1/1/2026; however, EE's are encouraged to review their withholding exemption forms if they wish to have more or less taxes withheld.
• *NEW* Illinois
  • Effective January 1, 2027, ER’s with more than 25 employees must provide paid jury-duty leave for time spent serving jury duty.
• 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.
• 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.
  • The MD PFML tax groups have been added to isolved with a default rate of 0.45 EE and ER.  If you wish to override these rates and pay additional amounts on behalf of your EE's please contact taxes@employdrive.com.
  • Employdrive will be releasing additional information in the coming months in preparation for the new program.  Visit Maryland FAMLI for additional information.
• 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.
• Nevada Unemployment
  • The state is updating the UI electronic reporting system to improve security.
  • ACTION REQUIRED: If you currently have credentials to log into your NV UI account, please log into to your account and update your authentication methods to ensure uninterrupted access to your account.
• *NEW* Ohio
  • The state revised the the withholding tables effective 8/1/26.
  • EE's are encouraged to review their withholding exemption forms if they wish to have more or less taxes withheld.
• 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.
• Vermont Unemployment
  • The state is implementing a new system for reporting UI Tax and is currently in the testing phase.  The new system is currently only available for claimants but employer and TPA access is anticipated to be added in the Summer of 2026.  We will provide updates on the progress of the transition as they become available.
• 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.
• 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* Ohio
  • Louisville, Stark County
    • Taxes will be collected by the Regional Income Tax Agency effective 10/1/26.
    • Employdrive will be reporting all taxes for 3Q26 to the new collector.
  • Woodville, Sandusky County
    • Added a resident and non-resident tax rate of 1%, effective 7/1/26.
    • All clients with EE’s impacted by this change have been notified individually.