Employer overlooking 2026 compliance changes in wage laws, payroll, and ACA requirements

The Compliance Reset: New Wage Laws, Tax Tables, and ACA Thresholds Every Employer Must Act On in 2026

Compliance deadlines don’t negotiate.

The new year arrives whether your payroll system is ready or not. Federal tax withholding tables change. State minimum wages increase. The ACA affordability threshold jumps nearly a whole percentage point. Retirement contribution limits climb again.

And if your systems aren’t updated at the top of the year, you’re not just behind; you risk violating federal and state requirements, which could lead to penalties and reputational damage.

Most employers know compliance matters. What they underestimate is how much changes at once, how quickly deadlines arrive, and how expensive mistakes become when audits start.

The employers who thrive in 2026 are those who recognize the significance of these changes, proactively map out every step, and confirm compliance early. This approach instills confidence and a sense of control in the audience. Understanding 2026 wage law updates and adapting quickly separates prepared businesses from those scrambling to catch up.

In our last blog, we introduced the major shifts employers need to prepare for. Now, we’re going to dig deeper… breaking down exactly what’s changing and what you need to do about it, so you can move forward with confidence and stay ahead of risk. 

Specifically, let’s look at:

  • Federal tax withholding changes that require payroll adjustments
  • State and local wage law updates that may impact compliance
  • ACA affordability and reporting requirements for the year ahead

Federal Tax Withholding Changes You Can’t Ignore

The IRS released Publication 15-T for 2026, and the updates aren’t optional footnotes. They stem from the One Big Beautiful Bill Act, which permanently extended tax rates from the Tax Cuts and Jobs Act and introduced two new above-the-line deductions that directly affect payroll processing.

Here’s what’s new:

Employees can now deduct up to $25,000 for qualified tips paid to them during the year. That’s not pocket change for restaurant servers, bartenders, and hospitality workers. It’s a substantial tax break that reduces their taxable income before withholding is calculated.

There’s also a deduction for qualified overtime compensation: up to $12,500 for single filers and $25,000 for married couples filing jointly. If you’ve got hourly employees pulling overtime, this matters.

The catch? These deductions only help employees who know about them and update their W-4 forms to account for them. If your payroll system isn’t processing the new W-4 worksheets correctly, employees lose the benefit until they file their taxes. That means smaller paychecks now and bigger refunds later.

The payroll provider should have already integrated these changes. If they haven’t confirmed it in writing, ask them to. Ensuring your system is updated now prevents compliance issues later. 

And here’s the detail most employers miss: if employees earned more than $150,000 from you in 2025, their catch-up contributions to 401(k) plans must now be Roth contributions starting in 2026. That’s a SECURE 2.0 provision that changes how high earners fund retirement, and it requires system updates your provider may or may not have automated.

The IRS doesn’t care if your vendor was slow. You’re responsible for compliance regardless. Managing payroll tax changes effectively means holding vendors accountable while maintaining your own oversight.

State and Local Wage Law Updates Across the Map

Nineteen states increase their minimum wages on January 1, 2026. Alaska, Florida, and Oregon follow later in the year. If you operate in multiple jurisdictions, maintaining wage compliance across all locations becomes significantly more challenging.

Hawaii sees the largest jump: the minimum wage rises by $2 per hour to $16. Nebraska hits $15 for the first time under a voter-approved plan. Rhode Island raises its minimum wage from $15 to $16. And in places like New York, regional differences apply—$17 in New York City and Long Island, but only $16 upstate.

Then there’s California, where the statewide minimum wage reaches $16.90, but fast food workers at chains with 60+ locations earn at least $20 per hour, and healthcare workers have separate minimums ranging from $19.28 to $25 depending on facility type.

Local jurisdictions add another layer. Denver hits $19.29. Seattle reaches $21.30. West Hollywood climbs to $20.25. And 49 cities and counties nationwide adjust their wage floors, many tied to inflation formulas that recalculate automatically.

If your payroll system applies one standard wage rate across all employees, you’re already out of compliance in states with regional or industry-specific rules.

Here’s the test: can your system automatically apply the correct minimum wage based on where an employee works, which industry they’re in, and whether local ordinances exceed state law? If not, relying on manual overrides risks compliance failures.

Tipped employees complicate things further. Some states allow tip credits. Others don’t. Flagstaff, Arizona, just became the first city to eliminate its subminimum tipped wage; now tipped workers there earn the full $18.35 minimum wage plus tips.

Every jurisdiction handles overtime differently, too. Some mandate daily overtime after eight hours. Others calculate weekly. A few require double-time on Sundays or holidays. If you’re processing payroll manually or with outdated software, errors are inevitable.

Following state labor law updates throughout the year helps employers catch these jurisdiction-specific requirements before they trigger violations. State labor laws don’t just affect hourly workers. Salary thresholds for exempt classification change, too. In states like California, Colorado, Maine, New York, and Washington, the minimum salary required to classify someone as exempt is tied to minimum wage increases.

That means that when the minimum wage increases, your exempt employee salaries may need to be adjusted to maintain their exempt status. Miss that update, and you’re suddenly paying overtime to people you thought were exempt.

ACA Affordability and Reporting Requirements

The Affordable Care Act affordability threshold jumped to 9.96% for 2026, up from 9.02% in 2025. That’s the highest rate since the ACA launched, and it changes benefits math for every Applicable Large Employer. Successfully navigating ACA Compliance in 2026 requires understanding both the threshold changes and their downstream effects on subsidy eligibility.

Here’s what it means: if you offer health coverage, employees can only qualify for marketplace subsidies if your plan fails the affordability test. With the threshold rising, you can require employees to contribute more toward their premiums before they become eligible for subsidies.

For calendar-year plans, the Federal Poverty Line safe harbor allows employee contributions of up to $129.89 per month for self-only coverage. That’s calculated using the 2025 FPL of $15,650, which employers can use for plans starting in early 2026.

But there are three affordability safe harbors, and choosing the right one matters:

The FPL safe harbor is easiest to administer because it’s a flat dollar amount. Every employee pays the same regardless of wages. Simple, clean, defensible in an audit.

The W-2 safe harbor bases affordability on each employee’s actual wages for the year. More precisely, you can’t calculate it until the year ends, which makes it harder to set contribution rates in advance.

The rate-of-pay safe harbor calculates affordability based on hourly wages or monthly salary. It works for employees with consistent pay but breaks down when people get raises, bonuses, or variable hours.

Whichever method you choose, apply it consistently across all employees. Mixing methods trigger audit complications.

The bigger issue? IRS enforcement is accelerating. Letter 226J audits—where the IRS bills you for employer shared responsibility penalties—are ramping up. They’re currently enforcing the 2023 tax years, which means 2024 and 2025 audits are coming soon.

If your Forms 1094-C and 1095-C filings had errors, you’ll hear about it. And the penalties aren’t trivial. The “A Penalty” for failing to offer coverage hits $3,340 per full-time employee (excluding the first 30). The “B Penalty” for providing unaffordable coverage runs $5,010 per employee who gets a subsidy.

For a 100-employee company, a single audit finding can trigger six-figure penalties.

Electronic filing is now mandatory for most ALEs. Paper forms slow processing and increase error rates. If you haven’t migrated to e-filing, make this switch before the March 2026 deadline. 

And don’t forget: the “family glitch” was fixed in 2023. Family members can now qualify for subsidies even if the employee’s coverage is affordable, as long as family coverage itself is unaffordable based on household income. That shifts subsidy eligibility in ways most employers haven’t fully accounted for.

Preparing for HR regulation changes requires understanding not just what changed, but how those changes interact with existing rules to create new compliance requirements.

The Bottom Line

2026 brings substantial compliance changes across federal tax withholding, state wage laws, and ACA affordability thresholds. The work isn’t optional, and the deadlines don’t flex.

Employers who get ahead of these changes—updating systems, training staff, and documenting processes—won’t just avoid penalties. They’ll build infrastructure that makes compliance easier every year.

Those who wait until problems surface will spend 2026 reacting to violations, paying penalties, and rebuilding trust with employees who got caught in the chaos.

The difference between the two isn’t luck. It’s preparation.

Want to stop playing compliance catch-up every January? Contact INFINITI HR to discover how partnering with compliance experts protects your business and frees you to focus on growth instead of regulatory headaches.

Want more on current employment trends?
Check out the recent blog, The Great Reset: The Strategic Employer’s Guide to 2026 Payroll, Benefits, and Compliance Changes, or come back for additional pieces on human resources, payroll, insurance, and benefits.

Gavel with “2026” symbolizing employer compliance guide 2026 for payroll, and benefits regulations

The Great Reset: The Strategic Employer’s Guide to 2026 Payroll, Benefits, and Compliance Changes

January doesn’t have to be chaos.

Most employers treat the first month of the year like an avalanche they can’t control. Tax tables change. Insurance premiums arrive. State wage laws get rewritten overnight. And somehow, everyone’s supposed to update systems, notify employees, and stay compliant while the business keeps running.

But here’s the thing: the employers who thrive in January are the ones who treat the new year as a strategic reset, not a fire drill, helping HR professionals and business owners feel confident and at ease.

2026 brings substantial shifts across payroll, benefits, and compliance. Federal tax withholding got recalculated. The ACA affordability threshold jumped nearly a full percentage point. Retirement contribution limits climbed again. And if you operate in multiple states, wage laws just became more complex.

Smart employers aren’t waiting to figure this out; they’re getting ahead of things now to prepare for a smoother transition. Understanding HR priorities in 2026 means recognizing that these changes aren’t isolated incidents but part of a broader shift in how businesses need to manage their workforce.

Payroll Compliance Updates That Can’t Wait

Let’s start with what hits every single paycheck: federal tax withholding.

The IRS released updated withholding tables for 2026 through Publication 15-T, and they’re not minor tweaks. The changes stem from the One Big Beautiful Bill Act, which extended individual tax rates and introduced new deductions for qualified tips and overtime compensation. If you’re still running 2025 tables on January 15th, you’re not just behind schedule. You’re violating federal requirements.

Here’s what changes:

Employees who earned tips or overtime can now claim deductions that weren’t available last year. Your payroll system needs to accommodate these adjustments through updated W-4 forms, which means every affected employee should file a new form if they want to benefit immediately rather than wait until tax season.

If your payroll provider hasn’t confirmed they’ve updated to the 2026 tables, that’s your first call this week, as it empowers payroll managers and helps them feel in control, ensuring compliance and avoiding penalties.

State and local wage laws are even messier. Nineteen states are raising minimum wages on January 1, with Hawaii seeing the largest jump at $2 per hour. Nebraska hits $15 for the first time. New York splits rates by region. California maintains separate minimum wage requirements for fast food and healthcare workers.

And that’s just minimum wage. Overtime rules, tip credit regulations, and pay transparency laws all changed in scattered jurisdictions. If you’ve got employees in multiple states, you can’t apply one standard anymore.

Multi-state employers face the most formidable challenge. When someone works remotely from a different state than your headquarters, which wage law applies? What happens when a traveling employee crosses state lines mid-pay period? These aren’t hypothetical questions anymore.

The answer isn’t ‘we’ll figure it out later.’ It’s building systems now that automatically apply the correct wage rates, properly track hours, and maintain documentation, helping compliance officers feel secure and ready for audits.

ACA Thresholds and Benefits Strategy

The Affordable Care Act just got more expensive for some employers and created new planning opportunities for others.

The affordability threshold jumped to 9.96% for 2026, up from 9.02% in 2025. That’s the highest rate since the ACA launched, and it fundamentally changes benefits math for Applicable Large Employers.

Here’s why it matters: if you offer health coverage, employees can’t qualify for marketplace subsidies unless your plan fails the affordability test. With the threshold rising, you can technically require employees to pay more toward their premiums before triggering subsidies. That shifts costs, but it also raises strategic questions.

Do you pass increased costs to employees, or absorb them to stay competitive? If you operate in a tight labor market, holding premiums steady might be worth the investment. If turnover isn’t a concern and margins are thin, you’ve got room to adjust. These decisions reflect broader employee benefits trends in 2026 that force employers to balance cost management with talent retention.

But there’s another angle most employers miss: the affordability of family coverage. The “family glitch” got fixed in 2023, meaning family members can now qualify for subsidies even when the employee’s coverage is affordable. If your family coverage pricing doesn’t account for this, you might be pushing dependents toward the marketplace without realizing it.

That’s not necessarily bad. But it should be intentional, not accidental.

The other big shift? The requirements for Forms 1094-C and 1095-C haven’t changed, but IRS enforcement has. Letter 226J audits are accelerating. If your 2023 filings had errors, you’ll hear about it soon. If your 2024 filings aren’t pristine, you’ll hear about it in 2026.

Understanding how to prepare your business for HR regulatory changes in 2026 is essential, as enforcement is tightening. Recognizing these key regulatory updates will help you stay ahead and avoid penalties. The gap between knowing what changed and implementing updates effectively is where most organizations risk non-compliance.

Electronic filing is now mandatory for most ALEs, starting with a request to identify HR and payroll system owners, clarifying responsibilities, and streamlining compliance efforts. Paper forms trigger delays and mistakes. If you haven’t migrated to e-filing, January is your last chance before the next cycle starts.

Cleaning Up the Administrative Drag

Most compliance problems don’t start with significant policy failures. They begin with small administrative gaps that compound over time.

Outdated W-4 forms are the classic example. Employees filled them out years ago and never updated them. Life changed—marriage, kids, second jobs—but withholding didn’t. Now they’re either getting surprise tax bills or lending the government money interest-free all year.

Your job isn’t to manage their taxes. But it is to give them the information and opportunity to make corrections. A simple email in late December reminding employees to review their W-4s prevents complaints in April.

The same logic applies to benefits elections. If employees are still enrolled in plans that no longer fit their needs, they’re wasting money. Open enrollment fixes that, but only if you communicate clearly what changed. Did premiums increase? Did coverage options shift? Did dependent eligibility rules tighten?

Don’t assume employees read the fine print. They don’t. Your job is to make changes obvious and easy to act on.

Then there’s documentation. When was the last time you audited employee files to confirm I-9s are current, direct deposit authorizations are signed, and emergency contacts are accurate?

Those aren’t just compliance paperwork; they’re your safeguard. Proper documentation ensures confidence during audits or emergencies, reducing stress and uncertainty.

Strategic Compliance Planning Beyond January Deadlines

Here’s what separates reactive employers from strategic ones: reactive employers focus on meeting deadlines. Strategic employers build systems that prevent fires from starting.

Take state labor law changes. While nineteen states changed their minimum wages in January, Alaska, Florida, and Oregon changed theirs mid-year. If your payroll system only accounts for January updates, you’re setting yourself up for violations in July and September.

A comprehensive employer compliance checklist helps you track every jurisdiction where you operate and flag changes before they take effect. That calendar should integrate with your payroll system so adjustments happen automatically, not manually.

Or consider retirement plan administration. The 401(k) contribution limit increased to $24,500 for 2026, with higher catch-up contributions for employees age 50 and older. If your plan documents haven’t been updated and employees aren’t notified, they might miss the opportunity to maximize contributions.

That’s not just a compliance gap. It’s a retention issue. Employees who feel uninformed about benefits leave faster than those who understand what’s available.

The same principle applies to leave policies. Sick leave, parental leave, and FMLA regulations vary wildly by state. Some jurisdictions mandate accruals. Others require upfront grants. A few banks use-it-or-lose-it policies entirely.

Staying current with labor law updates and tracking changes throughout the year prevents the cascading violations that happen when handbooks reference outdated rules. If your handbook still references 2024 rules, you’re advertising violations to anyone who reads it. Keeping pace with HR trends for businesses means proactively, not reactively, updating policies.

Building Systems That Scale With Growth

The employers struggling most in January aren’t necessarily doing anything wrong. They’re just operating at a scale their systems weren’t built for.

When you had 30 employees, tracking payroll changes manually worked fine. With 75 employees across three states, it’s impossible.

When you had one location, benefits administration was straightforward. With remote workers in eight states, it’s a legal minefield.

The solution isn’t working harder. It’s building infrastructure that scales without breaking.

Start with integrated systems. Your payroll, timekeeping, and benefits platforms should talk to each other. Data shouldn’t require manual transfers between systems. Changes made in one place should automatically update everywhere else.

That prevents the classic mistake: updating someone’s salary in payroll but forgetting to adjust their benefits deductions and/or changing their work location without updating which state wage laws apply.

Automation matters too. Compliance checklists shouldn’t live in someone’s head or a shared spreadsheet. They should trigger automatically based on dates, employee counts, and regulatory calendars.

When a new hire starts, does your system automatically generate the correct forms based on their state? When someone’s anniversary hits, do benefits options adjust automatically? When tax deadlines approach, do reminders go out without manual intervention?

If the answer is no, you’re spending time on tasks that software should handle.

Why January is the Perfect Reset Timing

Most businesses treat January 1st like an arbitrary line on the calendar. But there’s a reason so many compliance deadlines cluster in early January.

It’s the moment when federal and state governments expect alignment. Tax tables reset. Wage laws update. Benefit years renew for most employers. If you’re going to overhaul systems, January gives you the cleanest break.

Waiting until March or June means operating under outdated rules while scrambling to catch up. It means retroactive adjustments, employee confusion, and potential penalties for late compliance.

January also offers psychological leverage. Employees expect change at the start of a new year. They’re primed for new policies, updated forms, and fresh communication. Introduce the same modifications in August, and you’ll face more resistance.

Use that momentum. Don’t just meet the minimum requirements. Use January to implement improvements that make the rest of the year easier.

That might mean consolidating vendors, so you’re working with fewer partners. It might mean training managers on new compliance protocols so they can answer employee questions without escalating everything to HR. It might mean upgrading software that’s been barely functional for too long.

Whatever gaps frustrated you in 2025, January is when you fix them.

Making Changes Stick Through Accountability

Here’s where most “new year reset” efforts fail: they start strong and fade by February.

Compliance isn’t a one-time project. It’s an ongoing process that requires consistent attention. The employers who succeed build accountability into their systems so follow-through happens automatically.

That starts with clear ownership. Who’s responsible for monitoring wage law changes in each state? Who’s tracking ACA reporting deadlines? Who’s ensuring retirement plan documents stay current?

If the answer is “everyone” or “HR handles it,” nothing will happen consistently.

Assign specific responsibilities to specific people. Then build check-ins that confirm tasks are completed. A monthly compliance review meeting where each owner reports on their area keeps things visible and on track.

Documentation matters too. When you update a policy or adjust a process, the change should be recorded permanently and not buried in email. Not scribbled in meeting notes and captured in a system where future employees can reference it.

Because here’s the reality: the person who manages compliance today might not be in that role next year. If their knowledge exists only in their head, you lose it when they leave.

The Bottom Line

2026 brings fundamental compliance changes across payroll, benefits, and labor law. The employers who treat January as a strategic reset rather than a fire drill won’t just stay compliant. They’ll build systems that make the entire year easier.

That means updating tax withholding tables before the first 2026 payroll runs. It means reviewing ACA affordability calculations and adjusting benefits pricing accordingly. It means auditing wage rates across every jurisdiction where you operate. And it means building infrastructure that scales as you grow.

The work isn’t optional. But the chaos is.

Ready to make 2026 the year you finally get ahead of HR chaos? Contact INFINITI HR to learn how we help growing businesses build scalable HR systems that actually work.

Want more on current employment trends?
Check out the recent blog, Strategies for Improving Employee Engagement in the Workplace, or come back for additional pieces on human resources, payroll, insurance, and benefits.

INFINITI HR joins Wreaths Across America, to honor veterans by placing wreaths at Arlington National Cemetery

INFINITI HR Joins Wreaths Across America’s Journey to Honor American Heroes in Arlington National Cemetery for Second Year in a Row

Continued partnership reflects the company’s commitment to honoring veterans and supporting communities nationwide

ARLINGTON, VA – INFINITI HR, a leading national human resources provider, is honored to continue its partnership with Wreaths Across America, joining communities across the country in honoring veterans and preserving their legacy of service and sacrifice.

This December, Wreaths Across America once again embarked on its annual journey from Maine to Arlington National Cemetery—traveling more than 700 miles through communities along the Eastern Seaboard. Over the course of several weeks, the convoy carried thousands of veterans’ wreaths, stopping at cemeteries, memorials, and monuments to bring communities together in a powerful display of honor, gratitude, and remembrance.

INFINITI HR employees volunteered their time to lay wreaths at Seaside Cemetery in Blue Hill, Maine, on December 6, 2025 and INFINITI HR proudly sponsored 20 veterans’ wreaths that were laid at Arlington National Cemetery on December 19, 2025.

“Participating in Wreaths Across America is a powerful reminder of the responsibility we share to honor those who served,” said Christine Knisley, office manager and social chair of INFINITI HR. “Coming together as a team and community to remember our nation’s heroes is both humbling and deeply meaningful.”

The procession southward includes powerful moments as thousands of Americans gather to line the streets, waving flags and sponsoring wreaths to pay tribute to those who served. This partnership reflects INFINITI HR’s unwavering commitment to supporting military communities and fostering a culture of appreciation for the values of service, freedom, and unity.

About Wreaths Across America
Wreaths Across America coordinates wreath-laying ceremonies at more than 4,000 locations nationwide and abroad. Through its mission to remember the fallen, honor those who serve, and teach future generations the value of freedom, the organization ensures every veteran is remembered and their service is never forgotten.

About INFINITI HR
INFINITI HR is a leading Professional Employer Organization (PEO) offering scalable solutions for payroll, human resources, compliance, risk management, and employee benefits. As a trusted partner to businesses nationwide, INFINITI HR empowers growth through customizable services tailored to each client’s unique needs.

To learn more about INFINITI HR and its charitable initiatives, visit infinitihr.com. For information about Wreaths Across America or to sponsor a wreath, visit wreathsacrossamerica.org.

Group of business professionals discussing HR and payroll budgeting for 2026

Budgeting for HR & Payroll in 2026: Planning for Wage Increases, Compliance Costs, and Workforce Growth

COLUMBIA, MD – INFINITI HR, a leading national Professional Employer Organization (PEO), has released guidance to help employers plan for HR and payroll budgeting in 2026 amid shifting labor demands, new regulatory requirements, and rising workforce costs.

As organizations prepare for the year ahead, many employers are facing increased wage pressure, expanding compliance obligations, and higher costs tied to hiring and retaining talent. INFINITI HR’s 2026 outlook outlines the key HR and payroll budget considerations businesses should address now to remain competitive, compliant, and financially resilient.

“2026 is shaping up to be a year where tighter forecasting isn’t optional anymore,” said Scott Smrkovski, CEO of INFINITI HR. “Mandatory wage changes, new rules going into effect on January 1, and the cost of growing teams in a competitive market all point to one thing: employers need to build flexible budgets that can absorb change without derailing operations.”

Key HR & Payroll Budget Considerations for 2026

  • Wage Increases Across States: Many states… and a growing number of cities… will implement higher minimum wage rates in 2026, immediately increasing hourly labor costs. Beyond statutory changes, continued market pressure for professional and hard-to-fill roles is driving compensation upward, impacting payroll taxes, benefits expenses, and overall salary structures.
  • Rising Compliance and Administrative Costs: New leave requirements, overtime rule updates, and heightened enforcement activity are expected to drive compliance-related expenses higher. Employers should plan for additional HR expertise, updated policies, improved recordkeeping, and refreshed training programs to mitigate risk and avoid costly penalties.
  • Workforce Growth and Talent Strategy: Hiring challenges persist across industries. Employers should expect to invest more in recruiting, onboarding, and employee benefits. Retention strategies–often more cost-effective than repeated hiring–should be intentionally included in HR and payroll budgets rather than treated as secondary considerations.
  • Technology and Payroll Modernization: Setting aside funds for automation, updated timekeeping tools, and HR platforms that really talk to each other can take a lot of pressure off internal teams. Fewer mistakes. Less rework. Cleaner data. In real terms, that translates to time saved and risk reduced.The savings don’t always show up immediately on a line item, but over time, modern systems tend to pay for themselves through smoother operations and lighter administrative lift. Maybe that sounds obvious. But it’s still one of the most common gaps we see in HR and payroll planning.

Employers can better position themselves to manage uncertainty, support growth, and maintain compliance throughout 2026 by taking these factors into consideration.

About INFINITI HR
INFINITI HR is a leading Professional Employer Organization (PEO). The INFINITI HR PEO platform provides full regulatory compliance management, on-demand HR guidance, real-time payroll/tax filing, POS integration, and access into industry-leading True-Group Master Policies for Workers’ Compensation, Employment Practices Liability Insurance, and other operational business coverages.

Click here for the latest press releases and up-to-date news on human resources outsourcing. To learn more about how your business can save time, money, and mitigate employer liability, call INFINITI HR at 866-552-7360 or email info@infinitihr.com.



Tanzania destination for the INFINITI HR President’s Club 2025

INFINITI HR, The Professional Employer Organization (PEO) for Franchises®, Unveils Tanzania, as the Destination for The 2025 President’s Club

The Professional Employer Organization (PEO) for Franchises®, INFINITI HR, announces its highly anticipated destination for the 2025 President’s Club: the stunning landscapes of Tanzania. The President’s Club is a prestigious event as it is the professional milestone inspired by the INFINITI HR Scope of Values. 

This special life experience is held annually at a world-class international destination to honor exceptional sales leaders, national alliance partners, service professionals, and select certified franchise executives who have contributed to the historic growth of INFINITI HR throughout the 2025 calendar year, making INFINITI HR the preferred supplier to many of the most innovative franchises throughout the world.

President’s Club 2025: A Journey Through Tanzania

Take a look at the next INFINITI HR President’s Club experience, set against the breathtaking backdrop of Tanzania’s rich culture, iconic wildlife, and world-renowned landscapes. From unforgettable safaris to coastal beauty along the Indian Ocean, this destination offers a once-in-a-lifetime setting worthy of our top performers.

INFINITI HR President of Sales & Chief Business Officer Daniel Mormino made the official announcement, capturing the excitement and anticipation from selected franchisors and franchisees in attendance at the INFINITI HR Alliance Summit.

“In 2026, we’re heading to the stunning landscapes of Tanzania – the dream destination for our top achievers, where unforgettable experiences await,” Mormino said. “Tanzania is calling! The INFINITI HR President’s Club is an elite experience earned by leaders who drive results and inspire others. We are proud to honor their achievements and welcome them to Tanzania.”

A Tradition of Excellence

For over a decade, the INFINITI HR President’s Club has become known as the gold standard in the PEO industry, synonymous with INFINITI HR’s commitment to exceptional experiences for all clients and team members. Its 2024 President’s Club was celebrated this year in Portugal, and INFINITI HR continues its tradition in having exclusive honorees explore some of the world’s most sought-after destinations by providing a most unique blend of luxury, culture, and adventure for all who earn it.

About INFINITI HR

INFINITI HR is the leading Professional Employer Organization (PEO) for Franchises® and a premium supplier to the International Franchise Association (IFA). Recognized for its innovative human capital management solutions, INFINITI HR provides businesses across all 50 states with the tools they need to mitigate employer risk and enhance operational efficiency. With a focus on supporting franchises, franchisees, suppliers, and mid-sized businesses, INFINITI HR continues to be a driving force in the HR industry, known for its expertise in payroll, benefits, risk management, and recruitment process outsourcing.

For more information on INFINITI HR and the President’s Club, or to learn how INFINITI HR can support your business, please visit infinitihr.com.



Employees reviewing open enrollment for employers and employees 2025 options

INFINITI HR Open Enrollment 101: What Employers & Employees Need to Know for a Smooth Benefits Selection Process

COLUMBIA, MD – Open Enrollment season is here, and with it comes an important opportunity for employers and employees to evaluate and select benefits for the upcoming plan year. INFINITI HR, a national leading PEO ranked by Forbes Advisor and a 2025 Washington Post Top Workplace, is sharing key tips and best practices to help organizations streamline the open enrollment process. 

For INFINITI HR, the open enrollment period is October 27, 2025 through November 7, 2025.

“Each year we look to streamline our Open Enrollment process and expand our health and wellness benefits offerings so employees can make confident, informed choices while taking control of their health,” said Scott Smrkovski, CEO of INFINITI HR.

Key Tips for Employers During Open Enrollment

  • Offer Clear Resources: Make it easy for people to understand their choices by giving them straightforward benefit summaries, side-by-side plan comparisons, FAQs, and the option to attend virtual or in-person enrollment sessions.
  • Highlight New or Updated Offerings: If there are any changes this year–whether that’s expanded telehealth, added mental health support, supplemental coverage options, or adjustments in pricing–call those out directly rather than expecting employees to discover them on their own.
  • Ensure Your Employee Portal is Updated: Double-check that the online system is intuitive, current, and functioning smoothly so employees aren’t stuck hunting for forms or instructions at the last minute.

What Employees Should Keep in Mind

  • Review Your Current Coverage: Take a moment to look at how you used your benefits over the past year and what you might need going forward—providers, prescriptions, dependents, and anticipated medical care all play a role.
  • Use Decision-Support Tools: If your benefits platform includes comparison tools or cost estimators (such as a “Total Annual Cost” Plan Estimator, etc.), they’re worth using to clarify real differences in coverage and cost that aren’t always obvious on the surface.
  • Submit Elections On Time: Open Enrollment only lasts for a fixed window, and once it closes, changes typically require a qualifying life event (such as death, divorce, etc.), so do not miss the deadline.

2026 Benefits Highlights Through INFINITI HR

Plan options may vary by client group, but offerings for the upcoming year include:

  • Expanded Telehealth: We’re emphasizing more flexible virtual care this year, giving employees the ability to speak with medical professionals quickly for everyday health questions, follow-up conversations, and ongoing wellness support.
  • Functional Health & Wellness: Employees can also take a more proactive approach to their health through NutriVue Health, which includes optional at-home lab testing memberships that reveal markers like biological age and help guide long-term lifestyle and wellness planning.
  • Vision Insurance: For vision care, employees can use the VSP Choice Plan through Beam Benefits, which covers an annual eye exam and provides allowances for frames or lenses — helping reduce the usual out-of-pocket spending that comes with updating glasses or contacts.
  • Pet Insurance: For employees with pets, there are two pet insurance options available to help manage veterinary care costs and reduce the stress of unpredictable or emergency vet visits.

In addition, INFINITI HR is introducing enhanced Minimum Essential Coverage (MEC), access to Aflac BenExtend, and three plans for identity protection via Norton LifeLock, and more.

How to Enroll

Eligible employees receive a Welcome Email with instructions at the start of the enrollment period. Employees should log into the Employee Benefits Portal, review their options, and finalize plan selections before the stated deadline.

For questions, contact the INFINITI HR Benefits Team at benefits@infinitihr.com.

About INFINITI HR
INFINITI HR is a leading Professional Employer Organization (PEO). The INFINITI HR PEO platform provides full regulatory compliance management, on-demand HR guidance, real-time payroll/tax filing, POS integration, and access into industry-leading True-Group Master Policies for Workers’ Compensation, Employment Practices Liability Insurance, and other operational business coverages.

Click here for the latest press releases and up-to-date news on human resources outsourcing. To learn more about how your business can save time, money, and mitigate employer liability, call INFINITI HR at 866-552-7360 or email info@infinitihr.com.

INFINITI HR team at IFA Advocacy Summit supporting the American Franchise Act 2025

INFINITI HR℠, The Professional Employer Organization for Franchises®, Stands with the International Franchise Association (IFA) In Support of the Bipartisan American Franchise Act at the 2025 IFA Advocacy Summit

Leading franchisors, franchisees, and suppliers were invited to join INFINITI HR℠, The Professional Employer Organization for Franchises®, in Washington, D.C. to shape the future of franchising. 

WASHINGTON, D.C. Franchising is local, and it must be protected nationally. INFINITI HR℠, The Professional Employer Organization for Franchises®, is proud to stand with the world’s leading franchisors, franchisees, and suppliers in support of the bipartisan American Franchise Act. As one of the most important pieces of legislation in the history of franchising, the bipartisan American Franchise Act 2025 will protect and strengthen franchising across the country, safeguarding opportunities for small business owners and the communities they serve.  

“Franchising is a business growth strategy that has enabled the creation of more than 831,000 small businesses across the United States, generating approximately $896 billion in annual economic output, employing approximately 8.8 million workers, spanning approximately 300 industries,” said Daniel Mormino, INFINITI HR℠ Chief Business Officer. “The Professional Employer Organization for Franchises® must protect and honor all franchisees as independent small business owners at the heart of the U.S. economy.” 

Engaging with Lawmakers 

The franchise business model is rooted in a simple but fundamental value proposition — it enables aspiring small business owners to go into business for themselves, but not by themselves. This community includes legacy brands we know and love – and others that are just getting started. The model is founded on a relationship between a franchisor (or brand) and a franchisee (or individual business owner). It is vital to the consistency of products and services offered to consumers, the success of the system, and the value of the brand. Essentially, a franchise is a local business that licenses the branding and operational processes of the franchisor but is responsible for the day-to-day operations of its independently owned business. The local owner, or franchisee, is responsible for hiring staff, organizing schedules, managing labor costs inclusive of payroll, HR, benefits, and performing all daily operational tasks, as well as local sales and marketing. But that relationship and the opportunity it represents are under threat. 

A Commitment to Advocacy 

The bipartisan, bicameral American Franchise Act 2025 modestly amends the Fair Labor Standards Act (FLSA) and the National Labor Relations Act (NLRA) to clarify that: “A franchisor may be considered a joint employer of the employees of a franchisee only if the franchisor possesses and exercises substantial direct and immediate control over one or more essential terms or conditions of the employees of the franchisee.” This is consistent with historical precedent and current NLRB policy. 

The American Franchise Act 2025 applies only to franchisors and franchisees alleged to be joint employers under the FLSA and NLRA. Non-franchise independent contractor relationships and other tests of multi-party liability – e.g., misclassification, single employer, agency – are not covered by the legislation. 

Franchisors are not immune from a joint employer finding under the legislation. Actions such as setting minimum standards for brand protection – including to protect the franchisor’s trademarks and IP – and offering training materials or other operations resources do not amount to direct and immediate control. 

“For the first time ever, Congress has the chance to advance the bipartisan, bicameral American Franchise Act 2025, a landmark measure that would finally end years of uncertainty caused by shifting joint employer standards,” Mormino said. “INFINITI HR℠, The Professional Employer Organization for Franchises®, is proud to stand with the International Franchise Association (IFA) and our Coalition Partners in support of clear, common-sense legislation that affirms a fundamental truth: franchisees are independent small business owners. We are honored to support the PEOple who took a chance on themselves, their employees, and their communities.”

To learn more, please visit: franchise.org/advocacy-summit and savelocalbusinesses.com.

ABOUT INFINITI HR℠ 

INFINITI HR℠ is the home for PEO industry top talent and proud to be recognized as The Professional Employer Organization for Franchises®. Ranked ‘Best PEO for Franchises,’ INFINITI HR℠  is a customizable PEO by entrepreneurs for entrepreneurs. Franchisors and Franchisees allocate their total labor burden to INFINITI HR℠ for one holistic service, providing units of all sizes the competitive advantage of a large enterprise, with access to state-specific HR, True-Group Fortune 500® Level Benefits, Workers’ Compensation Insurance, EPLI, Cyber Liability Insurance, Joint-Employer Liability Insurance, and Recruitment Process Outsourcing (RPO) designed to attract and retain top talent, while providing predictability and stability to labor cost in changing times. 

Largest private companies in Washington DC 2025 list featuring INFINITI HR ranking #41

INFINITI HR Ranks #41 in the Washington Business Journal’s Largest 333 Private Companies List for 2025 in Greater D.C.

INFINITI HR team recognized among the largest private companies in Washington DC 2025Ranking highlights the leading PEO’s expanding footprint and leadership in HR outsourcing solutions

WASHINGTON, D.C. – Each year, the Washington Business Journal ranks the largest private companies in Washington D.C, highlighting hundreds of the top companies in the region. INFINITI HR, a rapidly growing, top-ranked PEO by Forbes Advisor, has secured a spot on the list of the largest private companies. This marks the 11th consecutive year INFINITI HR has earned a spot among the region’s most significant privately held businesses.

The 333 largest private companies in Washington D.C. generated more than $186 billion in combined revenue in 2024 and employ more than 477,000 people across the region. INFINITI HR’s continued climb in the rankings reflects its strong growth trajectory and its role as a major contributor to the region’s economic vitality.

“Securing a top 50 position (#41) this year is a milestone that reflects both our momentum and our mission,” said Scott Smrkovski, CEO of INFINITI HR. “This achievement is driven by our incredible team and clients nationwide, who inspire us to innovate, scale, and continue to set the standard for HR solutions that empower business owners.”

HR Outsourcing and PEO Services Driving Growth

INFINITI HR is an IRS-certified PEO serving thousands of businesses in all 50 states with customizable HR outsourcing services including payroll, benefits, compliance, risk management, and recruitment process outsourcing. The company supports some of the world’s most recognized franchise brands and was recognized as a 2025 Washington Post Top Workplace.

To view the list, click here*.

About INFINITI HR
INFINITI HR is a leading Professional Employer Organization (PEO). The INFINITI HR PEO platform provides full regulatory compliance management, on-demand HR guidance, real-time payroll/tax filing, POS integration, and access into industry-leading True-Group Master Policies for Workers’ Compensation, Employment Practices Liability Insurance, and other operational business coverages.

Click here for the latest press releases and up-to-date news on human resources outsourcing. To learn more about how your business can save time, money, and mitigate employer liability, call INFINITI HR at 866-552-7360 or email info@infinitihr.com.

*denotes a paywall



employee engagement through volunteering benefiting students with a back to school drive

INFINITI HR Wraps Up Sixth Annual Back-to-School Drive, Sets Bar for Community Impact

COLUMBIA, MD – In today’s business climate, where companies are branching out in different directions and trying to tackle bigger societal challenges, INFINITI HR showcased the impact of employee engagement through volunteering as it wrapped up its sixth annual Back-to-School Drive. We’ve seen plenty of corporate initiatives come and go, but this one really stands out. For the past six years, the leading PEO has rolled this out as part of its broader corporate social responsibility initiative to actively contribute to community outreach efforts. INFINITI HR supplies essential school materials like backpacks, notebooks, calculators, and other classroom essentials to students in underserved communities. And employees, clients, and partners gather at the company headquarters in Columbia, Maryland to organize, pack, and distribute donations.

Employee Engagement Through Volunteering at INFINITI HR

Most leaders we talk to are drowning in operational headaches while trying to keep their teams happy and productive. But there’s another challenge we’re seeing more frequently — the pressure to connect company activities with community values. It’s not just nice-to-have anymore. A recent Gallup poll painted a pretty concerning picture: U.S. employee engagement has hit its lowest point in a decade. Would you believe that only 31% of employees feel engaged at work and 17% are actively disengaged? Those numbers tell us something important — companies probably need to rethink their approaches. It’s not enough to focus solely on profits; we need environments where employees can participate in activities that really matter.

And so, the Back-to-School Drive that INFINITI HR runs is exactly the kind of program that can fight this downward engagement trend. They’re not just handing out school supplies to kids from pre-K through fifth grade — though that’s certainly valuable. They’re building something deeper: a culture where volunteering and community service become part of INFINITI HR’s DNA. Their employees get involved in collecting, sorting, and distributing these supplies over the course of a few weeks each August. The result? Local children get what they need, and — employee morale gets a significant boost. 

Corporate Social Responsibility and Community Outreach

What makes INFINITI HR different in the crowded field of community programs is their consistent approach to engaging both internal and external stakeholders. Many organizations treat community work as a sideline activity — something separate from their core business. INFINITI HR does things differently. They’ve woven community-centered programs directly into their corporate identity and this creates a natural connection between business results and social impact. For those who haven’t seen INFINITI HR’s approach before, you can learn more about their community work through their fifth annual drive, which demonstrated similar dedication and achieved record donations – more than 3,000 supplies collected and shared across Burtonsville Elementary School in Burtonsville, Maryland and Bond Mill Elementary School in Laurel, Maryland. INFINITI HR also partners with the local organization, Neighbor Network (Neighbors Helping Neighbors), to supply fully stocked backpacks for low-income families.

INFINITI HR’s Back-to-School Drive represents something bigger than just a single company initiative. It shows how forward-thinking businesses can make meaningful contributions to their communities while simultaneously improving their internal culture. For business leaders who feel overwhelmed by HR responsibilities, the message comes through clearly: outsourcing certain HR functions to providers like INFINITI HR can offer multiple benefits, including giving your workforce opportunities for employee engagement through volunteering, while making a meaningful impact on local students and communities.

To dive deeper into strategies beyond volunteering, check out INFINITI HR’s insights on improving employee engagement.

For more information about INFINITI HR’s community initiatives, or to inquire about volunteering or donating in the future, please contact Christine Knisley at INFINITI HR via email at christine@infinitihr.com or by phone at 301.798.5199.

About INFINITI HR

INFINITI HR is a leading professional employer organization (PEO) and is a nationally recognized HR outsourcing company that provides customized HR solutions, payroll, risk management, and benefits administration to businesses nationwide. As an IRS-certified PEO, INFINITI HR empowers companies to optimize their human capital while reducing costs and ensuring compliance with federal and state regulations.

Click here for the latest press releases and up-to-date news on human resources outsourcing. To learn more about how your business can save time, money, and mitigate employer liability, call INFINITI HR at 866-552-7360 or email info@infinitihr.com.

employee engagement strategies during onboarding meeting”

Strategies for Improving Employee Engagement in the Workplace

Drowning in HR Tasks? You’re Not the Only Business Owner Wearing Too Many Hats

Hiring, onboarding, keeping people motivated, worrying about who might be eyeing the exits—improving employee engagement in the workplace can feel like a second job stacked on top of your operational worries and tasks. We’ve all had those nights when we’re replaying the onboarding flow at 2 a.m. and wondering where things are slipping. Maybe that sounds obvious. But it isn’t always.

The broader picture isn’t pretty either. A recent Gallup snapshot puts U.S. employee engagement in the workplace at a ten-year low—only 33% of employees say they’re engaged. When engagement drops, we tend to see the same fallout: lagging productivity, rising turnover, and preventable costs that nick the margin quarter after quarter.

There’s some good news. HR tools and practices for employee engagement have moved forward—fast. Done right, they don’t just plug holes; they actually make work better for people. And that, in real terms, shows up in the numbers.

Why Employee Engagement Matters Right Now

Let’s step back for a moment. Disengagement isn’t just a morale issue; it’s an economic one. Research from Archie App estimates disengaged employees drain roughly $8.9 trillion from the global economy every year. A staggering figure, yes—but it tracks with what we see on the ground.

Flip the script and the upside is clear enough: engaged teams are linked to higher employee engagement with 18% higher productivity and 23% greater profitability. Work itself is changing, too. Between hybrid setups, remote positions, and AI and technology advancing at breakneck speed, employees are looking for more than just a paycheck. They want purpose in their work, flexibility in how they do it, and leaders who really inspire them.

And that expectation starts early. A thoughtful onboarding experience—clear expectations, real context, a sense of belonging—usually pays dividends far beyond week one.

How We Tackle Engagement (and Where INFINITI HR Fits in)

We’re not chasing quick fixes. We’re building systems that persist—tech-supported, people-first, and practical under real-world pressure.

  1. Onboarding that lasts longer than a week
    A slide deck and a handshake won’t cut it. We map a plan that spans the first month—often the first quarter—with defined milestones, culture touch points, and manager check-ins. 
  2. Use technology to remove friction—not relationships
    We lean on AI to automate routine questions and steps so managers have more time for actual coaching. A 24/7 HR assistant can answer benefits and time-off questions, nudge people through enrollments, send compliance reminders, and route FAQs before they become tickets. We also like the idea of using bots to run quick “pulse” surveys—short, targeted, and frequent. The result: faster answers, fewer bottlenecks, and more headspace for meaningful conversations. For teams exploring bots or automation, Steady Path Strategies (https://steadypath.ai) offers practical options starting as little as a few hundred bucks a month. 
  3. Personalize the first 90 days
    Small gestures matter. A “learning buddy,” role-specific materials, and a manager welcome that goes beyond logistics. Ensure people feel seen and heard.
  4. Create a 30/60/90 day plan
    Set measurable goals so employees know what success looks like in the first 90 days. No guesswork. Less drift. Better coaching conversations.
  5. Intentional feedback loops
    Establish regular check-ins, make them structured, and have quick and easy protocols to keep new hires from stalling out. Actually—no, let’s rephrase that. They make support the norm, not an exception we scramble to deliver.

Focus on those five, and we’ve found engagement rises and turnover eases—often quietly, then all at once.

Building What’s Next with INFINITI HR

The ground keeps shifting: more digital, more flexible, more human. AI and tailored onboarding aren’t “future state” anymore; they’re table stakes for companies that want to grow without burning people out.

The message for leadership is straightforward: invest in employee engagement in the workplace early, especially at onboarding, and the returns ripple across productivity, retention, and culture. Sometimes in ways we don’t predict on a spreadsheet.

Key Takeaways
• Revisit onboarding—could it be more structured, more personalized, more tech-assisted?
• Put a 30/60/90 plan in place so expectations are explicit.
• Build a steady feedback cadence; small course-corrections beat big rescues.

Actionable Next Steps
If operationalizing all of this feels heavy—that’s understandable. We can audit what you have, prioritize the highest-impact changes, and phase the rest. Outside help is often useful here; it keeps momentum when internal teams are stretched. When we invest in people, we’re investing in the business we say we want to run.

One last thought: disengagement is expensive. Engagement is an asset. Treating it that way changes the decisions we make this quarter.

Want more on current employment trends?
Check out the recent blog, HR Labor Law Compliance Updates – July 2025, or come back for additional pieces on human resources, payroll, insurance, and benefits.

Legal note
This article isn’t legal advice. Employment laws vary by jurisdiction and change over time. Please consult counsel before updating policies.