Retirement, taxes, AI, and employment law are critical issues for businesses to track in the new year

Paychex, Inc. (NASDAQ:PAYX), an industry-leading human capital management (HCM) company, released its annual list of top regulatory and compliance trends to watch in 2026. The list is intended to keep business leaders informed about the regulatory changes most likely to impact them in the coming year and why. This year's trends span retirement, taxes, artificial intelligence (AI) laws, and employment law.

"Navigating the ever-evolving regulatory landscape remains a top challenge facing businesses today," said Kelee Delaney, director of compliance risk at Paychex. "The federal push for deregulation is expected to spur a wave of legislative and regulatory action at the state level, adding complexity for companies in managing compliance. Our annual list serves as a strategic resource for business leaders, highlighting the most noteworthy trends Paychex is monitoring in 2026 that could significantly impact our clients and their employees."

A team of in-house compliance and government relations experts at Paychex monitors laws at federal, state, and local levels to update the company's HCM platforms and develop educational content for customers. The Paychex team has identified the following topics employers should watch closely in 2026:

Retirement: SECURE Act 2.0 will trigger changes to the Saver's Credit in 2027, exchanging it for a direct Saver's Match for eligible participants Employers that sponsor retirement plans, including 401(k) plans, that wish to accept Saver's Match contributions into their plan will need to work with their recordkeeper to amend their plan and enable funds to transfer directly to the qualifying individual retirement accounts.
Taxes: The 2025 Tax Law (also known as the One Big Beautiful Bill Act) includes several provisions impacting businesses and individuals. The tax law includes extensions, changes, and deductions of certain tax credits that could impact cash flow for businesses. Other provisions impact individual tax returns including employees that receive tips and overtime.
AI Laws: Last week, an executive order was signed, mandating the creation of infrastructure that enables the federal government to align against state-level AI laws. This shift may impact the large number of AI-specific state laws currently in place in California, Utah, Maine, Illinois, Colorado, and Texas, as well as many more pending.
Employment Law: Employers continue to have obligations regarding paid sick leave and paid family and medical leave. Some state and local jurisdictions are amending paid sick leave laws and eligibility requirements, effective January 1, 2026. New worker classification rulemaking also could be on the horizon for 2026.

For more detailed information and helpful resources on each of the 2026 top regulatory trends, visit paychex.com/articles/compliance/top-regulatory-issues. Paychex is hosting a webinar on January 14, 2026. Register to hear directly from members of the Paychex compliance team on how Paychex is helping businesses understand and prepare for these regulatory changes.

This content is for informational purposes only, is not intended to provide, and does not provide, legal, tax, or accounting advice. Businesses should consult with a qualified attorney, accountant or other professional based on their individual circumstances.

About Paychex

Paychex, Inc. (NASDAQ:PAYX) is the digitally driven HR leader that is reimagining how companies address the needs of today's workforce with the most comprehensive, flexible, and innovative HCM solutions for organizations of all sizes. Offering a full spectrum of HR advisory and employee solutions, Paychex pays 1 out of every 11 American private sector workers and is raising the bar in HCM for approximately 800,000 customers in the U.S. and Europe. Every member of the Paychex team is committed to fulfilling the company's purpose of helping businesses succeed. Visit paychex.com to learn more.

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Media Contact

Chelsea Wernick

Public Relations Program Manager

Paychex, Inc.

(585) 216-2974

cwernick@paychex.com

@Paychex