2026 brings several important updates for employers that directly impact payroll, benefits, human resources, and life insurance. From state minimum wage increases to 401(k) and HSA contribution limits, these changes affect how businesses manage employees and stay compliant.

At AdvantEdge HR, we help businesses stay ahead of these updates, ensuring payroll, benefits, and HR processes are accurate and stress-free. Here’s what employers in 2026 need to know.

1. Minimum Wage Updates Across the States

While the federal minimum wage remains $7.25 per hour, many states and localities have raised their rates for 2026. Employers must ensure payroll systems reflect these changes to remain compliant.

Key 2026 state minimum wages:

• California: $17.50 per hour
• New York (excluding NYC): $16.50 per hour
• Florida: $15.50 per hour
• Washington: $20.00 per hour

For commercial employers in Charleston, SC, the state minimum wage remains $15.00 per hour, but local ordinances may differ for certain municipalities or sectors. AdvantEdge HR helps ensure payroll calculations match both federal and state requirements.

2. Retirement Plan Contribution Limits

The IRS has updated retirement account contribution limits for 2026:

• 401(k), 403(b), most 457 plans: $23,000
• Catch-up contributions (age 50+): $7,500
• SIMPLE 401(k) and SIMPLE IRA: $18,500 with $3,500 catch-up

Employers should update payroll systems to accommodate these new limits and communicate changes to employees, helping them maximize their retirement savings.

3. Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA)

HSA contribution limits for 2026:

• Individual coverage: $4,250
• Family coverage: $8,500
• Catch-up contribution (age 55+): $1,000

FSA contribution limits are $3,050 per employee for 2026.

Properly integrating these limits into payroll ensures employees don’t exceed IRS thresholds and helps avoid tax complications. AdvantEdge HR guides businesses in updating contributions and communicating benefits clearly.

4. Payroll and Compliance Considerations

2026 also brings broader compliance updates:

• Overtime calculations: Review state-specific thresholds
• Payroll taxes: Adjust for any Social Security or Medicare wage base changes
• Reporting requirements: ACA and retirement plan notices may have updated forms

Accurate payroll is critical. Mistakes can lead to fines, employee dissatisfaction, and compliance risks. AdvantEdge HR ensures your payroll remains precise and up-to-date.

5. Life Insurance and Employee Benefits

For group life insurance and other employee benefits, 2026 updates may affect:

• Coverage limits
• Employer and employee contributions
• Tax treatment of premiums

Our HR and benefits team helps businesses audit and update policies, integrate adjustments into payroll, and clearly communicate changes to employees.

How AdvantEdge HR Supports Businesses in 2026

We make navigating 2026 updates simple, whether it’s payroll, benefits, HR, or life insurance:

• Payroll: Update wages, deductions, and overtime rules
• Benefits: Adjust HSA, FSA, 401(k), and life insurance contributions
• Human Resources: Ensure policies remain compliant and staff are informed
• Life Insurance: Monitor coverage, premiums, and integration with payroll

Stay Compliant and Keep Employees Informed with The Outsourced HR Professionals at AdvantEdge HR

2026 is a year of change for employers. Staying ahead of updates protects your business and helps your employees make the most of their benefits.

Contact AdvantEdge HR today to review your payroll, benefits, and HR plans for 2026. We’ll help you implement updates accurately, educate staff, and avoid compliance issues.