Businesses navigating 2026 should brace for change. Paychex, Inc. (Nasdaq: PAYX) has released its annual forecast of top regulatory and compliance trends, spotlighting areas that could materially affect HR, payroll, and operational strategy. This year’s trends range from retirement and tax reforms to AI legislation and employment law updates.
“Navigating the ever-evolving regulatory landscape remains a top challenge facing businesses today,” said Kelee Delaney, Paychex Director of Compliance Risk. “With federal deregulation prompting state-level action, companies must stay proactive. Our annual list highlights the trends most likely to impact clients and their employees in 2026.”
Retirement Changes: From Saver’s Credit to Saver’s Match
The SECURE Act 2.0 is set to replace the Saver’s Credit with a direct Saver’s Match for eligible participants beginning in 2027. Employers offering retirement plans—401(k)s included—will need to coordinate with recordkeepers to enable these contributions to transfer directly into qualifying IRAs. The shift could streamline retirement incentives for employees while requiring plan amendments on the employer side.
Taxes: New Provisions Could Impact Cash Flow
The 2025 Tax Law, known informally as the One Big Beautiful Bill Act, introduces extended tax credits, new deductions, and changes affecting both businesses and individual employees. This includes provisions for workers earning tips or overtime, meaning HR and payroll teams will need to adjust systems to ensure compliance and accurate reporting.
AI Laws: Federal Oversight Meets State Regulation
A recent executive order mandates federal infrastructure to align with state-level AI regulations, impacting states like California, Utah, Maine, Illinois, Colorado, and Texas. Companies leveraging AI in HR, payroll, or operational workflows should track evolving state laws closely, as federal guidance begins to interact with existing and pending legislation.
Employment Law: Paid Leave and Worker Classification Updates
Employers must continue monitoring paid sick leave and paid family and medical leave requirements, which are being updated in various states and municipalities effective January 1, 2026. Additionally, worker classification rulemaking may see new developments, influencing exempt vs. non-exempt status and gig or contractor definitions.
Preparing for 2026
Paychex combines monitoring of federal, state, and local regulations with updates to its HCM platforms and educational content for clients. A webinar on January 14, 2026, will provide direct insights from the Paychex compliance team.
For businesses looking to stay ahead, the Paychex 2026 trends list provides a concise roadmap for anticipating regulatory shifts across HR, payroll, and operational areas.
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