What happened?

As a reminder to all employers, several states with State Disability Insurance (SDI) and Paid Family Leave (PFL) programs have announced 2026 contribution rates and taxable wage bases. A few states -California

Hawaii, Rhode Island, and Washington- have not yet released their 2026 figures. Updates will follow as those figures are published.

States operating SDI and/or PFL programs have issued or announced 2026 contribution rates and annual taxable wage bases to date, including employer and employee contributions as applicable. These contribution rates apply to covered wages up to each state’s wage base; some programs also show maximum contribution amounts expressed in dollars.

What is SDI and PFL?

• SDI is state‑run wage‑replacement for non‑occupational disability funded by payroll contributions.

• PFL provides wage‑replacement for family‑care and bonding leave (and, in many programs, an employee’s serious health condition), also funded by payroll contributions. States may require employee, employer, or shared contributions, up to the state wage base.

Overview

• SDI states (e.g., CA, HI, NJ, NY, PR, RI) generally provide wage‑replacement for non‑work‑related disability. X        
• PFL programs (e.g., CO, CT, DE, DC, ME, MA, MN, OR, WA, plus SDI‑based states except HI) provide family‑leave benefits and, in many newer programs, coverage for a worker’s own serious health condition.

• Employer size matters in several states (e.g., CO, MA, OR, ME): small employers may be exempt from employer contributions but still must withhold and remit employee contributions and meet reporting duties.

• NY SDI uses weekly wage bases and caps; most other programs use annual wage bases.

Why this matters: Accurate withholding and funding under SDI and PFL programs are mandatory. Using the wrong rate, misapplying size‑based contribution rules, or failing to apply wage‑base caps can result in under‑ or over‑withholding, compliance findings, and payroll corrections, and potential penalties. In a co‑employment environment, accurate setup requires coordination between the employer and its PEO.

Action Steps for Compliance

• Identify jurisdictions where you have covered employees and confirm program type (SDI vs. PFL).

• Determine employer size under each state’s rules to know whether employer contributions apply.

• Update payroll systems with the 2026 contribution rates and wage bases; apply applicable maximum dollar caps where provided.

• Configure New York SDI as a weekly wage base and cap; treat others as annual unless noted.

• Communicate changes to employees (rate, cap, and any employer contribution where applicable).

• Monitor pending states (CA, HI, RI, WA) and refresh rates/wage bases once announced.

• Retain records of withholdings and remittances; confirm timely deposits and required filings.

Additional Information

State	Program	Applicable Employee Count	2026 Employer Contributions	2026 Employee Contributions	2026 Wage Base
CO*	PFL	10 or more employees owe employer contributions; fewer than 10 exempt from employer contributions (must still withhold/remit employee contributions and reporting)	0.88% (maximum: $1,623.60)	0.44% (maximum: $811.80)	$184,500 (federal Social Security wage base for 2026)
CT	PFL	N/A (no employer contribution)	None	0.5% (maximum: $922.50)	$184,500
DE	PFL	25+ employees: standard employer rate; 10–24 employees: parental leave only (reduced employer rate)	0.8% (25+ employees); 0.32% (10–24, parental leave only)	Employees may contribute up to 50% of cost (maximum: $922.50)	$184,500
DC	PFL	At least 1 Employee	0.75%	None	No Cap
ME	PFL	15 or more employees: employer contribution applies (employer may elect to split so employer and employee each pay 0.5%); 14 or fewer: employer contribution is 0.5% with the option to deduct up to 0.5% from employees)	1% for 15+ employees; 0.5% for ≤14 employees	0.5% (if employer elects to split) (maximum: $922.50)	$184,500
MA²	PFL	25 or more employees owe employer contributions; fewer than 25 exempt from employer contributions (must withhold/remit employee contributions and reporting)	0.42% (maximum: $774.90)	0.46% (maximum: $848.70)	$184,500
MN	PFL	31 or more employees: standard employer rate; 30 or fewer employees: reduced employer rate	0.44% (maximum: $811.80); 0.22% for ≤30 employees (maximum: $405.90)	0.44% (maximum: $811.80)	$184,500
NJ	TDI (SDI)	N/A (rate varies by employer status/experience, not by size)	0.5% for new employers (maximum: $224); 0.1%–0.7% for other employers (maximum: $336)	0.19% (maximum: $325.09)	$44,800 (employee wage base)
NJ	FLI (PFL)	N/A	None	0.23% (maximum: $393.53)	$171,100 (employee wage base)
NY	SDI	At least 1 Employee	Additional costs beyond employee contributions	0.5% (weekly) (maximum: $0.60 weekly)	$120 (weekly wage base)
NY	PFL	At least 1 Employee	None	0.432% (maximum: $411.91)	$95,348.76 (annualized equivalent of the state average weekly wage of $1,833.63 for 2026)
OR^	PFL	25 or more employees owe employer contributions; fewer than 25 exempt from employer contributions (must withhold/remit employee contributions and reporting)	0.4% (maximum: $738)	0.6% (maximum: $1,107)	$184,500
PR^	SINOT (SDI)	N/A	0.3% (maximum: $27)	0.3% (maximum: $27)	$9,000
Footnotes   † Delaware: Paid Family Leave includes phased implementation and partial program applicability based on employer size and leave type. ‡ Minnesota: Paid Leave contribution rates are based on current program guidance and remain subject to final implementation rules. * Colorado: Small employers (fewer than 10 employees) are exempt from employer contributions but must withhold and remit employee contributions and fulfill reporting obligations. ² Massachusetts: Small employers (fewer than 25 employees) are exempt from employer contributions but must withhold and remit employee contributions and fulfill reporting obligations. New Jersey: SDI program Temporary Disability Insurance (TDI); PFL program Family Leave Insurance (FLI). ^ Oregon: Small employers (fewer than 25 employees) are exempt from employer contributions but must withhold and remit employee contributions and fulfill reporting obligations. ^ Puerto Rico: SDI program Temporary Non-Occupational Disability Insurance Program (SINOT; El Seguro por Incapacidad No Ocupacional Temporal).

Employer actions that may lead to risk:

• Misapplying employer size rules (for example, taking an exemption that does not apply).
• Ignoring wage‑base caps (leading to excess withholding or shortfalls).
• Confusing weekly vs. annual bases (especially New York SDI).
• Using out‑of‑date rates in pending states (CA, HI, RI, WA).
• Remittance or reporting gaps for employee contributions where employer contributions are exempt.

For additional details:

• Federal – Social Security Administrator – Contribution and Benefit Base
• Colorado – FAMLI Business Brief — December 2025
• Connecticut – Connecticut Paid Leave
• Delaware – Delaware Paid Leave
• Washington – PFL Tax Rate Table (Calendar Year 2025)
• Maine – Paid Family and Medical Leave
• Massachusetts – Rate sheets for employers
• Minnesota – Paid Leave confirms premium rate, remains on track for launch in 2026
• New Jersey – NJ Department of Labor and Workforce Development Announces New Benefit Rates for 2026
• New York – What’s new for 2026
• Oregon – Unemployment Insurance tax and Paid Leave Oregon contribution rates hold steady for 2026
• Puerto Rico – SINOT – Programa del Seguro por Incapacidad No Ocupacional Temporal

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