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Takeaway
Stay ahead of 2026 HR compliance updates with key changes to tax forms, state tax withholding tables, unemployment insurance, pay transparency laws, international tax rates and more.
Paycom is committed to helping HR professionals navigate the ever-changing compliance landscape. In this edition of State of Compliance, we look at changes across seven states, at the federal level and internationally. Please note this list is not intended to be comprehensive. Our team is constantly monitoring for updates that may impact your organization.
Federal HR Compliance Updates
The Internal Revenue Service (IRS) has issued revised December 2026 instructions for Forms 1099-MISC and 1099-NEC, introducing several reporting updates that affect how tax filers capture and report certain payments. These instructions were issued to keep taxpayers in compliance with the One Big Beautiful Bill Act.
To learn more, visit the IRS website.
State HR Compliance Updates
Arkansas
The Arkansas Department of Finance and Administration released revised withholding tables in response to House Bill 1001 being signed on May 6, 2026. The new tables are effective retroactively to Jan. 1, 2026.
For more information, visit the Arkansas Department of Finance and Administration website.
Georgia
The Georgia Department of Revenue released revised withholding tables in response to House Bill 463 being signed on May 11, 2026. The new tables are effective retroactively to Jan. 1, 2026.
For more information, visit the Georgia Department of Revenue website.
Indiana
Indiana Senate Bill 162, effective July 1, 2026, updates the state’s unemployment insurance laws. The new law:
- affects how vacation and sick leave payments are treated in regard to unemployment benefits
- affects the definition of “employment” in regard to certain organizations
- tightens the definition of “suitable work”
- codifies administrative procedures for claims
- authorizes limited direct deposit disbursements
- addresses disaster unemployment assistance
To learn more, visit the Indiana General Assembly website.
Maine
Maine LD 54 HP 18, a pay transparency law that introduces requirements around disclosure and recordkeeping, becomes effective July 29, 2026. Under the new law:
- Employers with 10 or more employees must include a pay range in job postings.
- A “range of pay” may be based on factors such as an established pay scale, previous ranges for the position, current employee pay for similar roles or a budgeted amount.
- Positions compensated solely by commission must instead clearly state that compensation is commission-based.
- Employers must provide the pay range for a position to an employee upon request.
- Employers are also required to maintain records of each employee’s position and pay history throughout employment and for three years after employment ends.
To learn more, visit the Maine Legislature website.
Mississippi
Mississippi House Bill 4073 establishes the Mississippi Work and Save Program and took effect July 1, 2026. This state-sponsored retirement savings initiative:
- allows eligible employees and employers to voluntarily contribute to Roth IRAs via payroll deductions
- updates Mississippi’s public retirement and deferred compensation systems
- places limits on when and how retirees can return to public-sector work
To learn more, visit the Mississippi Legislature website.
Oregon
A new minimum wage went into effect in Oregon July 1, 2026. In the Portland metro, the rate is $16.80 per hour. The standard minimum wage is $15.55 per hour, and the nonurban minimum wage is $14.55 per hour.
Visit the State of Oregon Bureau of Labor and Industries website to see the rates for each county.
Virginia
A number of Virginia laws took effect July 1, 2026:
House Bill 1207/Senate Bill 2 establishes a statewide paid family and medical leave insurance program.
House Bill 238 is a labor and employment law covering worker classification, wage provisions and sentence credits.
House Bill 636/Senate Bill 215 prohibits employers from requesting or relying on a candidate’s wage or salary history and requires employers to include a good-faith wage or salary range in job postings.
To learn more, visit the Virginia General Assembly website.
International HR Compliance Updates
As Paycom supports clients with employees around the world, staying aware of international compliance updates is an important part of managing a global workforce. This section highlights recent changes outside the U.S. that may affect payroll, tax obligations and employee-related processes in the countries where organizations operate.
Canada
Updates to Canada’s provincial taxes were applied July 1, 2026. Employees could see a change in some provincial income taxes. Federal income taxes are not affected.
- British Columbia income tax:
- This new tax rate is 5.60% on the first $50,363 of an individual’s income. A prorated rate of 6.14% was applied July 1, 2026, for employees who were taxed at 5.06% for the first six months to reflect the midyear change.
- Income tax brackets were adjusted for 2026:
- 6.14% (prorated) for income under $50,363
- 7.70% for income from $50,363 to $100,728
- 10.50% for income from $100,728 to $115,648
- 12.29% for income from $115,648 to $140,430
- 14.70% for income from $140,430 to $190,405
- 16.80% for income from $190,405 to $265,545
- 20.50% for income of $265,545 and over
- In addition, for 2026 and subsequent years, the basic reduction is increased from $562 to $690. The basic reduction amount was indexed to $575, effective Jan. 1, 2026. Since this amount was used for the first six months of the year, a prorated basic reduction amount of $805 will apply for the remaining six months.
- Newfoundland and Labrador Basic Personal Amount (BPA):
- BPA for 2026 is set at $13,094, effective Jan. 1, 2026. A prorated BPA of $15,000 was applied July 1 for employees who were using the indexed BPA of $11,188 for the first six months to reflect the midyear change.
- If an employee has submitted a TD1NL prior to July 1, 2026, with the lower basic personal amount, employers do not need a new TD1NL to change it to the prorated amount.
- Prince Edward Island income tax:
- This new tax rate is 20% on an individual’s income above $200,000. A prorated rate of 21% was applied July 1, 2026, for employees who were taxed at 19% for the first six months to reflect the midyear change.
- Income tax brackets were adjusted for 2026:
- 9.50% for income under $33,928
- 13.47% for income from $33,928 to $65,820
- 16.60% for income from $65,820 to $106,890
- 17.62% for income from $106,890 to $142,520
- 19% for income from $142,520 to $200,000
- 21% (prorated) for income $200,000 and over
Please note there are no updates for Alberta, Manitoba, New Brunswick, Northwest Territories, Nova Scotia, Nunavut, Ontario, Saskatchewan, Yukon or Québec.
To see the full breakdown of tax changes, review the Canada Revenue Agency’s released publication.
