Why this matters for carriers and owner-operators
From higher unemployment insurance wage bases to fresh Paid Family and Medical Leave (PFML) rules, several states are changing payroll, tax, and reporting requirements effective January 1, 2026. For trucking companies—especially multistate fleets and owner-operators with employees—these updates will affect per-mile labor models, driver settlement templates, and year‑end W‑2 reporting. Below is a practical, state-by-state rundown of the changes most likely to hit your P&L and payroll workflows in 2026.
Highlights include Colorado’s larger unemployment insurance wage base and new tax handling on certain state medical leave benefits, updated pay data obligations and withholding tables in California, lower top rates in some state income tax systems, and 2026 PFML contribution changes in New York and New Jersey. These were compiled from a comprehensive 2026 compliance roundup and verified with primary state sources where applicable.
Colorado: UI wage base jump and FAMLI taxability
Colorado’s 2026 unemployment insurance (UI) chargeable wage base rises to $30,600 (up from $27,200 in 2025). Carriers with Colorado payroll should expect higher UI premiums as more wages are exposed. Plan to refresh budgeting models, especially for higher-paid drivers and dispatch staff.
Separately, beginning in 2026, certain benefits paid under Colorado’s Family and Medical Leave Insurance (FAMLI) program will be treated as taxable “third‑party sick pay” for federal purposes. Colorado’s FAMLI Division has told employers that if they have 10 or more employees, they will owe the employer share of FICA and FUTA on the taxable portion of FAMLI medical leave benefits. Expect FAMLI to handle the employee‑share withholding and to send regular notices so you can reconcile payroll and W‑2s. This is a notable change for fleets with Colorado headcount or terminals.
New York: PFL employee deductions increase
New York’s Paid Family Leave (PFL) contribution rate increases to 0.432% of gross wages per pay period in 2026, capped at an annual $411.91 per employee. Out‑of‑state carriers with even one New York employee must withhold at the 2026 rate. Update your deduction codes and driver communications before first January payroll.
New York also confirmed the 2026 maximum weekly PFL benefit at 67% of the statewide average weekly wage, yielding a $1,228.53 weekly cap. While the benefit formula doesn’t change your employer cost directly (PFL is employee‑funded), it does drive employee questions and HR documentation—make sure handbooks and onboarding materials reflect 2026 numbers.
Other 2026 changes worth a look
- California: 2026 withholding tables and amended pay data reporting rules are in effect, including a shift to SOC job categories. Review how you classify mechanics, warehouse teams, and third‑party labor contractors that support your fleet.
- New Jersey: 2026 employee contribution rates for Disability Insurance (TDI) and Family Leave Insurance (FLI) are reduced versus 2025, easing paycheck deductions for drivers on NJ payroll. Verify your provider has loaded the 2026 tables.
- Montana, Nebraska, Oklahoma: Updated 2026 state withholding tables and lower top rates in some cases. If you run intrastate operations or employ remote staff in these states, refresh tax tables and test stub outputs.
- Maine and Massachusetts: States updated PFML guidance for 2026 in response to federal tax rulings, clarifying when medical leave benefits are taxable wages and what employers must report. If you staff terminals in New England, coordinate with payroll for W‑2 reporting.
Action checklist for trucking payroll and compliance teams
- Run a January 2026 “mock payroll” for Colorado and New York employees to validate UI wage base exposure (CO) and PFL deductions (NY).
- Update payroll system tables, earning codes, and third‑party admin feeds for Colorado FAMLI taxable medical benefits, ensuring employer FICA/FUTA is accrued where required and employee FICA is captured from FAMLI reports.
- Refresh multistate onboarding packets and driver handbooks to reflect 2026 deductions, benefits, and contact points (e.g., NY PFL deduction notices).
- Coordinate with your TMS/settlement provider so owner‑operator settlements that include W‑2 wages for company drivers reflect new state deductions accurately.
- Brief dispatch and terminal managers: stricter pay data reporting (CA) and evolving PFML rules (NE/MT/OK/NJ/ME/MA) may trigger employee questions at the window—equip frontline leaders with talking points.
Bottom line: build these 2026 state updates into your lane pricing and labor budgets now. A few hours of table updates, handbook edits, and mock payroll runs in December can prevent January surprises in driver pay, tax remittance, and compliance reporting.
Sources Consulted: BambooHR Compliance Corner; Colorado Department of Labor and Employment; New York State Paid Family Leave; New York Workers’ Compensation Board/DFS.
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This article was prepared exclusively for truckstopinsider.com. For professional tax advice, consult a qualified professional.
