As we head into 2026, several key payroll and benefits updates are coming that will affect how New York employers manage pay, benefits, and compliance. Whether you run a small business or oversee a growing team, these updates matter — and missing them can get expensive.
At Computer Payroll, we make sure our clients stay ahead of these changes so payroll runs smoothly, benefits stay compliant, and teams stay focused on growth — not red tape.
Let’s break down what’s new for 2026.
🩺 HSA & FSA Limits for 2026
The IRS has released the new Health Savings Account (HSA) and Flexible Spending Account (FSA) limits for 2026.
| Category | 2025 | 2026 | Change |
|---|---|---|---|
| HSA (Self-Only) | $4,300 | $4,400 | +$100 |
| HSA (Family) | $8,550 | $8,750 | +$200 |
| Catch-Up (Age 55+) | $1,000 | $1,000 | No change |
| Health FSA | $3,300 | $3,400 | +$100 |
HDHP Plan Requirements (for HSA eligibility):
Minimum deductible: $1,700 (self) / $3,400 (family)
Maximum out-of-pocket: $8,500 (self) / $17,000 (family)
What employers should do:
Update 2026 open enrollment materials and payroll deduction setups.
Confirm that offered health plans still qualify as HDHPs under the new thresholds.
Communicate the increased limits to employees who contribute to HSAs or FSAs.
💰 New York Minimum Wage & Exempt Salary Thresholds
The state’s minimum wage continues to rise as part of the scheduled statewide increases.
| Region | 2025 Rate | 2026 Rate |
|---|---|---|
| NYC, Long Island, Westchester | $16.00/hr | $16.00/hr (no change) |
| Rest of New York State | $15.50/hr | $16.00/hr |
Exempt (Salary) Thresholds for 2026:
| Region | Weekly | Annual Equivalent |
|---|---|---|
| NYC, Long Island, Westchester | $1,275 | $66,300 |
| Rest of New York State | $1,199.10 | $62,353.20 |
Tipped Food Service Workers wage for 2026:
| Region | Rate | Tip Credit |
|---|---|---|
| NYC, Long Island, Westchester | $11.35 | $5.65 |
| Rest of New York State | $10.70 | $5.30 |
What employers should do:
Review salaried employees to ensure they meet the new minimum salary test for exempt status.
Adjust hourly rates in payroll before January 1, 2026.
Communicate changes early to avoid confusion on the first payroll of the year.
💼 Retirement Contribution Limits & Secure Choice
Federal retirement contribution limits are climbing again for 2026, giving employees a chance to save more — and employers more room to offer competitive plans.
| Plan Type | 2025 Limit | 2026 Limit |
|---|---|---|
| 401(k) / 403(b) Elective Deferrals | $23,500 | $24,500 |
| Catch-Up (Age 50+) | $7,500 | $8,000 |
The Secure 2.0 Act Change
Starting January 1, 2026, employees earning over ~$145,000 (indexed) must make catch-up contributions to 401(k)s on a Roth (after-tax) basis.
This change will impact payroll coding and plan administration for high-earners.
New York Secure Choice Savings Program
New York’s long-delayed state-run Roth IRA program is finally rolling out in March 2026.
Employers with 10+ employees who don’t offer a retirement plan will be required to register and auto-enroll their workers.
What employers should do:
Confirm 2026 limits with your payroll provider or plan administrator.
Verify Roth capability in your 401(k) plan for catch-ups.
For employers without a plan — decide whether to enroll in the state program or offer your own.
⚙️ Other Key Payroll Updates
IRS Standard Mileage Rate: Expect a modest bump again in 2026 (final numbers released December 2025).
Social Security Wage Base: Typically increases by ~$5,000 per year — likely landing near $177,000 for 2026.
Federal Unemployment Tax (FUTA): Rate remains 6.0% on the first $7,000 of wages (with potential credits).
State Unemployment (SUI): New York rates and wage bases are reviewed annually; 2026 updates will post in December 2025.
🧾 What This Means for Employers
2026 isn’t about massive overhauls — it’s about precision. The increases are incremental but important. Getting them wrong leads to under-withholding, compliance headaches, and tax corrections that waste everyone’s time.
At Computer Payroll, we’re already updating our payroll and HR systems to reflect these changes automatically on January 1st.
Our clients can relax knowing compliance updates are handled — no manual adjustments, no surprises.
🌲 Rooted in Service. Built for Growth.
These aren’t just numbers — they’re the rules that shape your company’s foundation. Staying compliant means staying focused on what matters most: your people and your business.
If you’re not yet a Computer Payroll client and want proactive payroll and HR support that actually scales with your business, reach out today.