Overview
- Notice 2026-06 designates 2026 as an additional transition year, pausing federal withholding, employment taxes, and information reporting on state-paid PFML benefits.
- The extension does not cover voluntary employer “pick-up” contributions, which must still be treated as wages and reported on Form W-2.
- Revenue Ruling 2025-4 remains in effect, stating state PFML payments are taxable income and wages for federal employment tax purposes.
- The relief described applies to public state PFML programs and does not extend to private plans.
- States, employers, and payroll providers are expected to use 2026 to ready systems for compliance after the transition ends.