All posts by Gordon Middleton

As employers enter 2026, many are discovering a hard truth: success is no longer determined by strategy or technology alone, but by the ability to execute consistently in an increasingly complex workforce environment. Our recent webinar with Madeline Laurano, Insights to Action: Resolutions for Employer Success, explores how HR, payroll, and compliance leaders can turn insight into measurable outcomes. Drawing on original research from Aptitude Research and real-world employer experiences, the webinar outlines the key trends shaping employer operations. Watch the webinar for actionable resolutions helping organizations reduce risk, improve compliance, and elevate the employee experience. Below is a recap of what we learned from Madeline. From Insight to Execution: Why 2026 Is a Turning Point for Employers The past several years have fundamentally reshaped employer operations. Organizations now manage workforces that span multiple states, employment types, and regulatory environments—all while facing growing compliance demands and pressure to do more with fewer resources. During the Insights to Action: Resolutions for Employer Success webinar, research revealed that most employers already have clear strategies in place. The real challenge lies elsewhere: execution. Employers struggle to apply those strategies consistently across locations, worker populations, and systems. Disconnected workflows, manual handoffs, and fragmented technology stacks create risk, inefficiency, and poor employee experiences. This webinar reframes the conversation for 2026, shifting the focus from planning and digital transformation to operational excellence. Key Workforce and Employer Trends Defining 2026 One of the central themes of the webinar is that employer success in 2026 will be defined by how well organizations manage complexity. Several key trends emerged: Operational Excellence Over Digital Transformation While technology investment has increased, results have not always followed. The webinar emphasizes moving beyond tool adoption to designing workflows that actually make work happen—consistently and compliantly. Automation With Guardrails Automation and AI continue to accelerate, but trust, transparency, and control are critical. Employers must ensure automation supports accuracy, compliance, and risk reduction—not just efficiency. Data as an Operational Asset Organizations are collecting more workforce data than ever, yet many struggle with data integrity and usability. The webinar highlights the importance of using data proactively to manage risk and improve decision-making, rather than treating it as static reporting. Embedded Services as a Competitive Advantage Research shows that service and domain expertise now outweigh product features in provider selection. Employers need partners who understand regulatory complexity and can actively support execution—not just software delivery. Compliance Moves Upstream Compliance is no longer a downstream, legal-only function. It directly impacts employee trust, brand reputation, and operational resilience. In 2026, compliance must be embedded into everyday workflows. Actionable Resolutions for Employer Success Rather than offering abstract predictions, the webinar delivers five practical resolutions employers can act on immediately: Design workforce operations around execution, not just strategy Simplify processes before automating to avoid scaling inefficiencies Make compliance part of the workflow, not a final checkpoint Treat employee experience as an operational outcome, not a soft metric Hold technology and service investments accountable to impact Together, these resolutions provide a roadmap for employers seeking to reduce risk, improve consistency, and deliver better outcomes for both the business and employees. Why This Webinar Matters Now As regulatory requirements expand and workforce models evolve, employers can no longer rely on reactive compliance or fragmented solutions. The Insights to Action webinar reinforces the importance of trusted partnerships, deep domain expertise, and services that help employers navigate change with confidence. For HR, payroll, and compliance leaders, this session offers more than insight—it offers a practical framework for success in 2026. Watch the Webinar On-Demand The Insights to Action: Resolutions for Employer Success webinar is available on demand through Experian Employer Services with expert insight from Madeline Laurano. Frequently Asked Questions (FAQ) What is the Insights to Action: Resolutions for Employer Success webinar about? The webinar focuses on how employers can move from strategy to execution in 2026 by addressing workforce complexity, compliance challenges, and operational inefficiencies. Who should watch this webinar? HR leaders, payroll professionals, compliance teams, and employer services decision-makers—especially those managing multi-state or complex workforces. What are the key takeaways from the webinar? Key takeaways include the shift to operational excellence, the importance of embedded compliance, automation with guardrails, and actionable resolutions employers can implement immediately. Does the webinar address compliance challenges? Yes. Compliance is a central theme, with guidance on embedding compliance into workflows to reduce risk and improve employee trust. Is the webinar available on demand? Yes. The session is recorded and available for on-demand viewing through Experian Employer Services. Get a head start on success in 2026 by speaking directly with one of our experts:

It's officially a new year, but that doesn't mean 2025 ended without some lingering effects. Employers face an evolving regulatory environment shaped by immigration reform, AI legislation, unemployment tax adjustments, and the uncertain fate of key programs like the Work Opportunity Tax Credit (WOTC). In this blog post, we distill the most important takeaways from Experian Employer Services’ latest quarterly webinar, covering what HR, tax, and compliance teams need to know now to prepare for the rest of 2026. While Congress has been historically inactive in 2025—passing only 36 bills—the federal regulatory machine never stopped. In Experian Employer Services’ November webinar, “Quarterly Regulatory & Legislative Updates for Employers (Q4),” experts Gordon Middleton and Wayne Rottger broke down the compliance shifts that will shape the road ahead. Missed the live event? You can access the on-demand recording of Quarterly Regulatory & Legislative Updates (Q4) to hear directly from our compliance experts. This 60-minute session offers in-depth coverage of urgent topics including IRS withholding changes, state unemployment tax trends, and federal immigration enforcement. Watch now. Congressional Inactivity Doesn’t Mean Employer Invisibility Although Congress passed fewer bills than any time in modern history, executive action and federal agencies filled the gap. The president issued over 210 executive orders in 2025, and federal agencies like USCIS and DHS continued rapid-fire regulatory activity. Among the biggest changes: H-1B Visa Petitions: A controversial $100,000 petition fee for some H-1B applications was introduced in September and clarified in October. This policy is being challenged by the U.S. Chamber of Commerce and others. EAD Auto Extensions: Effective October 30, 2025, DHS eliminated auto extensions for many Employment Authorization Document (EAD) categories—including asylum applicants, TPS holders, and refugees. E-Verify Enforcement: E-Verify operations remained active through the government shutdown, a signal that immigration vetting remains a priority. Employers were reminded to submit cases timely and document any delays. One Big Beautiful Bill Act (OBBBA): Big Withholding Changes Ahead The OBBBA continues to reshape how payroll and HR teams handle tipped employees: Tip Tracking: Employers must now identify “qualified tips” tied to specific occupations using Treasury-issued codes (nearly 70 new codes were released). 2026 W-2 Draft Changes: A new Box 14B will be introduced for these occupation codes, and Box 12 will include new reporting fields. Also expect a 15-line worksheet on the 2026 W-4 draft, which expands deductions. Employer Limitation: Employers can’t force employees to adopt the new W-4, so communication strategies must be prepared in advance. Shutdowns and Backlogs: IRS and SSA Still Expect Timely Compliance Despite mass furloughs at the IRS and other federal agencies, deadlines remain intact. Automated notices are still being sent, payments are due, and limited live support is available. SSA, DHS, and ICE continued operating at high capacity during the shutdown. State-Level Legislation: The Real Compliance Movers States continued to pass meaningful reforms while the federal government stalled. Highlights include: AI Restrictions: Illinois now prohibits AI in hiring if it leads to discriminatory outcomes. Wage Theft Notices: Rhode Island’s new hire notice requirement starts January 1, 2026. Pay Transparency: Massachusetts will require employers with 25+ employees to publish pay ranges starting October 2026. Paid Leave Expansions: Nebraska mandated new minimums for employers with as few as 11 employees. Unemployment Legislation: A Rising Risk for Employers 2025 saw 188 unemployment-related bills, with many focusing on expanding access to benefits—even to striking workers. Washington and Oregon passed laws granting UI benefits during trade disputes, raising red flags about future trust fund stability. Key takeaways: Trust Fund Risk: Most state UI trust funds are underfunded. Large-scale strikes could significantly drain them. FUTA Credit Reduction: California and the U.S. Virgin Islands are likely to face FUTA reductions in 2026. California alone owes $21 billion in federal UI loans. Taxable Wage Base Increases: Half of U.S. states are increasing UI taxable wage bases in 2026, affecting employer payroll budgets. WOTC Renewal: Hopeful, But Not Done Yet The Work Opportunity Tax Credit (WOTC) expired December 31, 2025. Although it has historically been renewed retroactively, no bill has yet been introduced. Industry advocates report promising signs, but employers are advised to continue processing applications to remain retroactively compliant if renewal occurs. Final Key Takeaways Compliance Doesn’t Pause—even during a shutdown. Deadlines remain active. Prepare for OBBA Impact—new W-4 and W-2 formats will require payroll system updates. State Legislation Will Continue—watch for wage theft, pay transparency, and AI usage laws. UI Tax Changes Are Coming—plan for higher taxable wage bases and future trust fund pressures. WOTC Renewal Uncertain—continue screening and tracking candidates until further notice. Use a Trusted Compliance Partner—keeping up with regulatory changes is more than a full-time job. Stay informed year-round with the Experian Employer Services Blog. Subscribe for updates on legislative changes, compliance tools, and insights from our subject matter experts.

As employers close out another year and prepare to adjust for another year of regulatory updates, we are reminded of some items that loom large for this year and next: Changes to this year’s Affordable Care Act (ACA) reporting requirements and a new Form W-2 for next year. Below is a closer look at the changes and what your organization can do to stay ahead of the regulatory curve. Changes to ACA and 1095-C Requirements Late 2024, Congress passed an act designed to allow applicable large employers some flexibility in how they furnish forms 1095-C to their employees. Employers are no longer required to automatically send 1095-C forms to all full-time employees. Employers wishing to take advantage of the new process must instead follow the specific alternative notice methodology enacted under the 2024 laws. Essentially, employers are considered compliant if they have posted a “clear, conspicuous and accessible” notice on their benefits website informing employees that they may request a copy of the form and how they may do so. If such a copy is requested, the employer must provide the copy by either January 31 or within 30 days of the request, whichever is later. The deadline for furnishing the 1095-C or posting the notice as to how to obtain the form is March 2, 2026. Employers opting for the alternative methodology must post the “how-to” notice by that time and leave it posted through October 15, 2026. It is important to note that employers wishing to use the alternative furnishment methodology ensure they adhere to the guidance provided in IRS Notice 2025-15, which states that employers wishing to provide the requested form in electronic format, first obtain electronic consent from the employee, much as they would prior to providing an electronic W-2. New Form W-2 for 2026 In addition to changes to ACA reporting, the IRS recently released a draft Form W-2 for Tax Year 2026. The new form, which has already been edited three times, introduces new codes for Box 12, and a new box 14b to account for items introduced in the One Big Beautiful Act. The new codes are TA, for newly created “Trump Accounts”, TP, for reporting qualified tips, and TT, for reporting qualified overtime.While no changes were made to the W-2 for this tax year, employers can take some solace in the IRS announcement that no penalties will be levied regarding OBBA reporting for the current tax year. Compliance minded employers should review these items and adjust their processes accordingly. At a minimum, preparation should include a) updating employee communications regarding requesting Form 1095-C, b) coordinating with payroll providers/vendors to prepare for 2026 W-2 changes, and c) ensure they are monitoring the IRS website for any changes or updates.

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The Michigan Supreme Court, in a 4-3 decision handed down July 31, overruled the state legislature and reinstated paid sick leave laws passed via ballot initiative. The state legislature had reacted to the laws by greatly weakening them prior to the new state governor taking office, switching the executive branch to Democratic control under Gretchen Whitmer. The legislators “adopt and amend” methodology was called out by the court as unconstitutional, and the original measures approved by voters now take effect February 21, 2025. The Earned Sick Time Act provides employees with one hour of paid sick time for every 30 hours worked, up to a total of 72 hours annually. Small employers, defined as having fewer than 10 employees, would be required to offer a hybrid program of up to 40 hours of paid sick leave and 32 hours of unpaid sick leave annually. Employers that already have policies providing at least the required amount will be considered compliant.  It is important to note that carryover will also be required. Earned sick time will carry over from year to year up to the yearly maximums. Employers should also be aware of the retaliation provision included in the Earned Sick Time Act. Employers are presumed to have violated to have violated the Act if they terminate employees within 90 days of use of a sick day, which may cause conflict with specific employer attendance policies. Paid sick leave continues to be a hot topic in state legislatures. While the Federal Family and Medical Leave Act guarantees up to 12 weeks leave, that time is unpaid. As of this decision, some 16 states plus the District of Columbia have paid sick leave laws in place. Employers need to ensure they are adequately tracking these laws, as they invariable have steep penalties attached regarding employer responsibilities. In addition, many of these laws call for provision of specific notifications that outline employee rights.  Experian Employer Services will continue to provide legislative and regulatory updates as items affective employers develop.

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