Category: Compliance Corner

Beginning with fourth quarter 2026 wage reporting, Indiana employers will be required to provide additional employee information as part of their regular quarterly unemployment wage reports. The first enhanced wage report will be due January 31, 2027. The filing specifications will be updated to ensure your filing is in compliance prior to remittance.

Employers will continue to report all information currently required. However, the following additional data elements will be required for each employee:

• Job Title
• Hours Paid
• Reporting Unit Number (RUN)
• Apprenticeship/Internship Status

Also, starting with Q4/2026 reporting, the agency will only accept valid Standard Occupational Classification (SOC) codes aligned to the current (2018) system of codes. This is to ensure improved standardization and validity of codes submitted.

How to prepare

Is there anything we want them to do from the Insperity side to prepare?

Employers should review and update employee job information, including job title details and SOC codes, prior to processing the final payroll of fourth quarter 2026. Completing this review in advance will help ensure the required information is accurate and available for the Q4 filing.

Maryland employers can now register for the state’s Family and Medical Leave Insurance (FAMLI) program. The Maryland Department of Labor is encouraging employers to complete their registration as soon as possible to ensure they are prepared for upcoming program requirements.

FAMLI is a statewide insurance program designed to provide eligible employees with job-protected, paid leave for certain life events and family needs. Beginning in January 2028, employees may be eligible for up to 12 weeks of paid leave, with benefits of up to $1,000 per week, to:

• Welcome a new child into their family
• Address their own serious health condition
• Care for a family member with a serious health condition
• Manage qualifying family needs related to a military deployment

Key dates

• Employer registration: Available now
• Payroll contributions begin: First pay period in January 2027
• First contribution payment due: April 30, 2027
• Paid leave benefits available: January 2028

Under the State Plan, employers and employees will contribute to the program through quarterly contributions. Employers may withhold up to half of the required contribution from employee wages through payroll deductions.

Small employer considerations

Employers with fewer than 15 employees qualify for FAMLI’s small employer discount and are exempt from the employer portion of contributions.

For more information about FAMLI, visit paidleave.maryland.gov.

Employers offering Paid Family and Medical Leave (PFML) benefits through an approved private plan may occasionally consider transitioning to a state-sponsored PFML program. While such a change may seem straightforward, the timing of the transition can have significant compliance, reporting and administrative implications.

Why timing matters

Private PFML plans and state-sponsored PFML programs operate under separate reporting structures, filing requirements and administrative processes. When an employer moves from a private plan to a state program in the middle of a calendar year, the result is a split reporting period that can create additional complexity.

Mid-year transitions may affect:

• Tax and contribution reporting
• Quarterly and annual filing requirements
• Payroll system configuration and reconciliation
• The timing and accuracy of required returns and reports

Because of these challenges, reporting and filing processes may be delayed until the beginning of the following calendar year when a private plan is terminated and replaced with a state-sponsored plan during the same year.

Best practice: Make changes at the start of a new year

To help minimize administrative burdens and reduce the risk of reporting complications, employers should consider implementing PFML plan changes effective January 1 whenever possible.

Beginning a new plan at the start of a calendar year provides a cleaner reporting period and helps ensure that payroll, tax and compliance records remain aligned throughout the year.

Coordinate with Insperity early

Employers planning to move from a private PFML plan to a state-sponsored program should notify their payroll support team before processing the first payroll of the new calendar year.

Advance notice allows time to:

• Update payroll system settings
• Configure applicable tax and contribution codes
• Review reporting requirements
• Validate compliance-related system changes
• Reduce the likelihood of payroll processing or reporting errors

Evaluate the impact before making a change

Before electing to terminate a private PFML plan and enroll in a state-sponsored program, employers should carefully review the potential reporting and filing implications. Understanding these requirements in advance can help avoid unexpected administrative challenges and ensure a smoother transition.

Key takeaway

If you are considering transitioning from a private PFML plan to a state-sponsored PFML program, plan ahead. Whenever possible, schedule the change effective January 1 and communicate with your payroll provider before the first payroll of the new calendar year. Early planning can help reduce compliance risks, streamline reporting and support a successful transition.

The latest proposed rule on Trump Accounts (sometimes called 530A accounts) was released by the U.S. Treasury Department and IRS on August 11, 2026. It expands how families and employers can contribute to these child savings accounts.

Key proposed changes

• Pre-tax payroll contributions: Parents could contribute money directly from their paychecks into their children’s Trump Accounts on a pre-tax basis, similar to how some health savings and flexible spending arrangements work. This would reduce the parent’s taxable income.
• Employer contributions: Employers could contribute up to $2,500 per year to the Trump Accounts of employees’ dependent children, with those contributions excluded from the employee’s gross income.
• Payroll integration: The proposal provides guidance on how employers can establish payroll systems to fund these accounts.
• Not yet final: The regulations are currently proposed rules. Treasury and the IRS are accepting public comments and have scheduled a hearing before issuing final regulations.

Background on Trump Accounts

Under current law:

• Children born between 2025 and 2028 may receive a one-time $1,000 federal contribution if eligible.
• Families and others can contribute up to $5,000 annually to a child’s account.
• The accounts are designed as long-term, tax-deferred investment accounts for children.

What it means for families

The practical effect of the proposed rule is that Trump Accounts would become more attractive because parents could potentially receive an upfront tax benefit through payroll deductions, and some employers could provide matching or direct contributions.

In short: the newest proposal would allow pre-tax paycheck contributions and tax-favored employer contributions to children’s Trump Accounts, making them function more like workplace benefit programs.

Next steps

At this time, our teams are actively reviewing the proposed regulations and evaluating system requirements needed to support Trump Account contributions within the isolved platform.

Because the regulations have not yet been finalized, payroll processing requirements, reporting obligations, and administrative procedures may change before implementation.

We understand many employers are interested in offering this benefit to employees and their families. Our goal is to provide a compliant, streamlined solution once regulatory guidance is finalized. We will continue monitoring Treasury and IRS developments and will keep you informed of any significant updates.

Effective immediately, employers must provide up to 4 weeks of unpaid, job protected leave to eligible employees in Tennessee who need time off to recover from surgery related to a living organ donation.

Employees should give at least 30 days’ notice when the need for leave is known in advance, or as soon as reasonably possible if the leave is unexpected.

An employee is eligible if they:

• Have worked for the employer for at least 12 months (the months do not have to be consecutive)
• Have worked at least 1,250 hours during the 12 months before the leave begins

Employer actions 

• Train all managers and HR personnel on requirements of the new law.
• Notify employees of the increased benefits.
• Reach out to your Insperity team to inquire about additional HR support services and consult the HR Resource Center for updating any policies or procedures impacted by these changes.

Resources

• SB 579

As a reminder concerning changes needed to support the One Big Beautiful Bill Act (OBBBA), we have implemented an update to our time entry systems and processes that requires employee hours to be identified by workweek (for employees who are eligible for overtime).

Call to action

These updates require specific actions. In the coming weeks, we will be reaching out to schedule a discovery call that should take less than one hour. 

• Please email HRCore.Support@Insperity.com to let us know who we should contact (name and phone number) to schedule the discovery call. 
• To expedite scheduling, please include [Your Company Name]: Discovery Call Contact Info in the subject line.  

Beginning Jan. 1, 2026, Minnesota will become the thirteenth state to implement a statewide Paid Family and Medical Leave (PFML) program. This initiative is designed to support employees during significant life events, such as bonding with a new child, recovering from a serious illness or caring for a loved one, while providing partial wage replacement and job protection.

With the launch date approaching, employers should begin preparing now to help ensure compliance and support their workforce effectively.

What sets Minnesota’s PFML apart?

• Inclusive coverage: It applies to nearly all workers, including part-time and seasonal employees.
• Flexible leave options: Employees may combine medical and family leave for up to 20 weeks per year.
• Generous wage replacement: This will be among the highest in the nation, with up to 90% of wages replaced.
• Universal application: Unlike the Family and Medical Leave Act (FMLA), PFML applies to all employers, regardless of size.

Key employer responsibilities

Premium collection begins January 2026

Employers must determine how to split the 0.88% payroll tax with employees. This contribution funds the PFML program and will be processed through the Minnesota Unemployment Insurance (UI) system, which most employers already use.

Quarterly wage reporting starts Q1 2026

Employers must generate the wage detail report and submit via the Minnesota Department of Employment and Economic Development UI portal. Each report must include:

• Employee names.
• Social Security numbers.
• Wages paid.
• Hours worked.

Employers not currently covered by UI (e.g., nonprofits or religious organizations) must create a “Paid Leave Only” account to comply.

Important notes

• All employees must be included in PFML wage reporting, even if only some are covered under UI.
• Premium deductions must begin Jan. 1, 2026, based on reported wages.

Employee communication deadline: Dec. 1, 2025

Employers are required to distribute PFML notices to employees by Dec. 1, 2025. These notices should explain:

• Available benefits.
• Eligibility criteria.
• How to apply for leave.

Internal communications teams should begin drafting materials now to help ensure clarity and compliance.

Leave administration planning

Employers should review and update internal leave policies to coordinate PFML with existing programs such as FMLA and short-term disability. Minnesota’s PFML allows:

• Up to 12 weeks of medical leave.
• Up to 12 weeks of family leave.
• A combined maximum of 20 weeks per benefit year.

With less than four months remaining before the initial employee notices are required, employers may consider the following actions:

• Finalize payroll tax strategies.
• Prepare wage reporting systems.
• Communicate clearly with employees.
• Align internal leave policies with PFML requirements.

For ongoing updates and official guidance, visit Minnesota’s official PFML site at mn.gov/deed/paidleave. 

Effective Jan. 1, 2026, Minnesota employers will be required to comply with updated labor standards that strengthen employee rights around meal and rest breaks. These changes were enacted as part of a broader omnibus bill and are designed to promote workplace fairness and wellbeing.

What’s changing?

Rest breaks
Employees must receive a paid 15-minute rest break for every four consecutive hours worked. This is a shift from previous standards that only required “adequate time” for restroom use without specifying duration. 

Meal breaks
Employees working six or more consecutive hours must be provided an unpaid 30-minute meal break. Previously, breaks were only required after eight hours, and the law did not define how long those breaks should be. 

Penalties for noncompliance

If an employer fails to provide the required breaks:

• The employee must be compensated for the missed time at their regular rate of pay.
• Employers could be required to pay additional liquidated damages equal to the missed compensation. 

While the law outlines these penalties, further clarification from the state is expected before the effective date to help employers understand how to calculate and administer these payments.

What Insperity HRCore™ solution clients should do

• Train managers and supervisors on the updated requirements and enforcement procedures.
• Prepare internal policies that reflect the new standards and communicate them clearly to employees.
• Monitor for additional guidance from Minnesota regulators ahead of the 2026 rollout.

Click for more information: Work breaks, rest periods | Minnesota Department of Labor and Industry.

Starting Jan. 1, 2026, Connecticut is turning up the volume on employee wellness with a major expansion of its Paid Sick Leave (PSL) law. If you’re an employer in the Constitution State (or you have remote workers based there), now is the time to prepare for a more inclusive, more protective leave landscape.

What’s changing?

Connecticut’s current PSL law applies to employers with 25 or more employees. Beginning in 2026, that threshold drops to 11 employees, and by Jan. 1, 2027, it will apply to all employers with at least one employee.

This phased rollout gives smaller businesses time to adapt, but make no mistake: The clock is ticking.

The nuts and bolts

Here’s what the updated law includes:

• Accrual rate: Employees earn one hour of paid sick leave for every 40 hours worked.
• Leave can be used for:
  • Personal illness or injury.
  • Caring for a sick family member.
  • Mental health days.
  • Safe time for survivors of domestic violence.

This expansion reflects a growing national trend toward holistic employee wellbeing and recognizing that health isn’t just physical, it’s emotional and situational, too.

Why it matters for payroll

This isn’t just an HR issue; it’s a payroll priority. Here’s why:

• Accrual tracking must be accurate and compliant.
• Leave balances must be visible and accessible to employees.
• Payout rules (especially at termination) must be clearly defined.
• Multistate employers need to ensure Connecticut-specific compliance.

What you should do now

1. Audit your head count: If you’re hovering near the 11-employee mark, start planning now.
2. Train your managers: They’ll be the first line of communication when employees request leave.
3. Revise your employee handbook: Include the new PSL policy and make it accessible.

Don’t wait for 2027

Even if you’re under the 11-employee threshold today, preparing early gives you a competitive edge. Offering PSL now can boost recruitment, retention and morale, especially in a tight labor market.

Key dates to remember

Date	What happens
Jan. 1, 2026	Law applies to employers with 11+ employees
Jan. 1, 2027	Law applies to all employers

For more information, please visit: Connecticut Paid Sick Leave Law – Legislative Report (2025-R-0016).

What’s changing?

Section 603 of the Secure 2.0 Act mandates that catch-up contributions made by certain high-income earners in employer-sponsored retirement plans must be designated as Roth (after-tax) contributions.

This rule applies to plan years beginning on or after Jan. 1, 2026. 

Key highlights

• Who’s affected: This impacts employees age 50 or older earning more than $145,000 in FICA wages from their employer in the prior calendar year.
• Mandatory Roth treatment: These employees must make catch-up contributions on a Roth basis.
• Indexed threshold: The $145,000 wage threshold will be adjusted annually for inflation.

Action items for employers

1. Update payroll systems: Track employee wages to determine Roth eligibility.
2. Communicate with employees: Educate high earners on the tax implications and benefits of Roth contributions.
3. Coordinate with recordkeepers: Ensure systems are ready to process Roth catch-up contributions.

Why it matters

This change supports long-term retirement planning by encouraging tax diversification. While it may increase current tax liability for some employees, Roth contributions grow tax free and offer significant benefits in retirement.

Suggested next steps

• Engage your plan advisor to assess readiness.

Be on the lookout, as additional information about preparation for this provision will be provided in the coming months.