As you prepare for the 2026 payroll year, it’s important to review your year-start payroll and compliance settings in Workstream.
This article outlines the most common year-start updates, including tax parameters, PTO balances, benefits, and minimum wage changes. It also highlights state-specific updates that may require action from you, your team members, or Workstream.
Reviewing these items early helps reduce payroll errors and compliance issues later in the year.
General year-start changes
Review the items below and confirm they are up to date in Workstream.
Year-start change | Required action | Who is responsible |
State Unemployment Insurance rate | Employer | |
Withholding allocation | Team members update their Federal W-4 based on life changes.
Employers can resend the payroll onboarding link if needed | Employee |
PTO balances | Employer | |
Benefits | Update employee deductions in Workstream. If Workstream administers your benefits and you have changes to providers or premium rates, contact benefits@workstream.is | Employer |
Minimum wage increases | Employer |
State-specific year-start changes
Some updates apply only to specific states. Review the table below and take action if applicable.
State update | Required action | Who is responsible |
Minnesota Paid Family Leave (new for 2026) | Employer | |
California Disability Insurance Increase | Contribution rate updated from 1.2 percent to 1.3 percent | Workstream |
CO FAMLI Premium Rate Decrease | Contribution rate updated from 0.9 percent to 0.88 percent | Workstream |
WA Labor and Industries (L&I) Experience Factor | Washington Employers can add and update in Workstream | Employer |
Indiana County Tax Liability |
All team members must complete Indiana Form WH-4 | Employer and employee |