If you run a business, “new year” means new goals and, of course, new rules. Laws at the federal and state levels are shifting again in 2026, and while not all changes are seismic, several require real action from employers.
Whether it’s payroll, job postings, employee classification, or tax strategy, there’s something on the table for nearly every business.
Here’s what you’ll find in this guide:
Let’s get into what’s new and what you should do to prepare.
2026 isn’t a regulatory tsunami, but there are enough waves to throw off businesses that aren’t paying attention. Most of the action is happening in tax policy and reporting rules, with a few long-running compliance themes still evolving in the background.
Below are the biggest federal developments that business owners should prepare for.
Congress passed a major tax reform bill in late 2025, and it has serious implications for how you’ll manage earnings, payroll, and forecasting next year. Here’s what’s sticking:
What this means: If your employees are racking up overtime or working for tips, they could see a tax break, but only if payroll is set up correctly. And while some deductions are extended, others are winding down: bonus depreciation drops to 20% in 2026.
How to take action: Talk to your accountant or tax advisor. Revisit your payroll structure, update tax planning forecasts, and make sure eligible employees get the right info about the new deduction (and don’t wait until January 1 to do it).
The Corporate Transparency Act (CTA) is one of the most misunderstood federal rules to hit small businesses in recent years. It requires many companies — LLCs, S-corps, etc. — to report their “beneficial owners” (think, anyone with significant control or ownership) to FinCEN.
Originally, existing businesses had to file by January 1, 2025, with a penalty up to $10,000 and even jail time for willful violations.
But here’s the twist: enforcement has been paused while the government re-evaluates how burdensome the rule is for small domestic companies. For 2026, most businesses can hold off on reporting unless they’re foreign-owned or involved in higher-risk activities.
Even if you're in the clear for now, that could change.
It’s not a fire drill yet, but it could turn into one. Better to be ahead of it than explaining to regulators why you weren’t.
The federal government isn’t dropping major new employment laws in 2026, but don’t mistake that for a green light to relax. There are still critical compliance zones:
None of this is earth-shattering on its own. But misclassifying one employee or missing one report can lead to expensive audits or back pay. For BBSI’s part, we’ll continue to support clients with ongoing compliance updates, templates, and expert guidance behind the scenes.
While federal law sets the floor, states like California build entire second stories (and sometimes add a rooftop lounge of extra rules). That means businesses operating in multiple states, or even just in California, need to track overlapping and diverging policies. Here are four high-impact updates your team should prep for in 2026:
Each of these changes affects either payroll, job postings, benefits, or internal systems. That means they’re worth handling before they cause problems.
For instance, failure to update a job posting with a compliant pay range in California could trigger complaints or even investigations. Something as simple as not updating your exempt salary minimums could be a wage-and-hour lawsuit waiting to happen.
Your Next Step: Use this list to audit your 2026 readiness across all locations where you operate. If you’re unsure how new state laws overlap with federal rules or your current policies, BBSI’s HR and compliance teams can help sort the signal from the noise.
New rules are only a problem if you’re caught flat-footed. The good news is, BBSI’s got your back. With the right prep, you can avoid headaches and use 2026’s changes as an opportunity to clean up dusty processes, streamline operations, and reinforce compliance from the inside out.
Here’s how to turn regulation into routine:
Staying ready for changes is more about posture than perfection. Businesses that make time to anticipate changes don’t just bolster compliance; they often improve hiring practices, retain more employees, and cut down on legal exposure.
2026 brings a stack of new employment law developments, tax changes, and state-specific rules that affect how you operate. For small and mid-sized business owners, the cost of missing these changes can be high, but the opportunity to adapt early is even higher.
This blog walked through the biggest updates, what they mean for your business, and how to get ahead of them with a practical game plan. As always, BBSI is here to help you interpret, apply, and stay on top of these shifting requirements.
Have questions or want help reviewing your 2026 compliance strategy? Reach out to your local BBSI representative today.