Paychex Identifies Top Regulatory Trends to Watch in 2026

Key Terms

SECURE Act 2.0 regulatory

A package of U.S. federal rules that changes how people and employers save for retirement by adjusting contribution limits, tax treatments, required withdrawal ages, and plan options. Think of it as an updated toolkit for retirement accounts that can alter how much individuals can put aside, when they must start taking money out, and what employers must or can offer. Investors care because these rules influence household saving behavior, corporate plan costs, and the flow of money into retirement-focused investments.

Saver’s Credit financial

A saver’s credit is a government tax break that reduces the amount of income tax you owe when you put money into a retirement account, such as a 401(k) or IRA. Think of it like a coupon that lowers your tax bill for saving: it makes each dollar you contribute more valuable by increasing your after‑tax return, which can influence how much people choose to save and how attractive employer retirement plans appear to investors.

Saver’s Match financial

A saver’s match is a government-funded boost that adds money to an individual’s retirement contribution, similar to an employer matching part of a 401(k). Think of it like a coupon the government gives for saving: for every dollar you put into a qualifying retirement account, the program contributes an extra amount up to a limit, helping small savers build nest eggs faster. Investors watch saver’s match programs because they can raise household retirement balances, shift more cash into long-term investment accounts, and affect consumer saving and spending patterns.

401(k) plans financial

Employer-sponsored retirement savings accounts that let workers set aside part of their pay into investment choices, sometimes with matching contributions from the employer; money can be contributed before taxes or after taxes depending on the plan type. Think of it as a dedicated, long-term piggy bank that grows through investments and occasional employer top-ups—important to investors because 401(k) funds represent a large, steady source of capital in the market and influence consumer savings, retirement security, and long-term stock demand.

executive order regulatory

An executive order is a formal directive issued by a country’s chief executive (for example, a president or prime minister) that tells government agencies how to apply or enforce laws and policies without waiting for new legislation. It matters to investors because these orders can quickly change rules, permits, taxes, trade or regulatory enforcement—like a manager changing company policy overnight—creating risks or opportunities that can affect company costs, revenues and share prices.

worker classification regulatory

Worker classification is the legal determination of whether someone who does work for a business is an employee or an independent contractor, which sets different rules for pay, taxes, benefits and legal protections. For investors, this matters because misclassification can change a company's costs, create fines or lawsuits, and alter future cash flow — like discovering some items in inventory actually carry hidden fees and obligations that affect profit and risk.

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

ROCHESTER, N.Y.--(BUSINESS WIRE)-- 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

Source: Paychex, Inc.