Minnesota has enacted a new Paid Family & Medical Leave (PFML) program that will introduce a new payroll tax beginning in 2026.
Key details:
This program provides eligible Minnesota workers with paid leave benefits for qualifying family and medical reasons.
What Zeal is doing:
Zeal will automatically begin withholding and calculating Minnesota PFML contributions in 2026 for any employee who performs work in Minnesota. No action is required at this time, but we recommend employers familiarize themselves with the program ahead of the effective date.
Learn more about the program here:
Minnesota Paid Leave – Employer Overview (mn.gov)
In early 2026, Zeal will start collecting Standard Occupational Classification (SOC) codes for employees.
What are SOC codes?
An increasing number of states now require SOC codes to be reported on unemployment insurance tax returns. Collecting this information proactively helps ensure accurate filings and reduces the risk of state notices or rejections.
As we enter a new tax year, a quick review prevents under-withholding, over-payments, and state notices.
Zeal customers do not need to take any action, minimum wage and tax calculations are handled for you automatically.
For the 2025 tax year, the U.S. Department of Labor confirmed that California was the only state subject to a FUTA credit reduction due to outstanding federal unemployment loans. Employers with California employees saw a 1.2% credit reduction, increasing FUTA liability by up to $84 per employee (1.2% of the $7,000 FUTA wage base).
Zeal monitored federal guidance, calculated all employer- and employee-level impacts, shared advance estimates in December, and processed a one-time debit on January 20, 2026—ahead of the IRS deadline—to ensure accurate, predictable compliance.
FUTA credit reductions are evaluated annually and can change year to year. If future reductions occur, Zeal will follow the same proactive playbook: early communication once guidance is released, clear estimates, transparent calculations, and timely processing aligned with IRS requirements.
In December 2025, a federal judge in Hartford sentenced Anthony Delmaro, 49, of Woodbridge, Connecticut, to 15 months in prison for tax evasion tied to his roofing and paving business, Kings Roofing. According to court documents, from 2012 to 2022 Delmaro failed to register the business, did not obtain a federal Employer Identification Number, and did not file income or payroll tax returns. Prosecutors stated he paid workers in cash and used check-cashing services, alternate addresses, and aliases to conceal business income.
Delmaro was also ordered to serve two years of supervised release, complete 200 hours of community service, and pay more than $1.1 million in restitution to the IRS and approximately $578,000 to the Connecticut Medicaid program. He remains free on bond and is scheduled to report to prison in March 2026.
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