Skip to content
Human Resources

Paycheck Changes Employees Can Expect to See in January

Last updated: June 26, 2026

With the new tax year comes many paycheck adjustments. Here are some of the changes employees might expect to see starting in January 2026:

Benefit deductions:

  • Employees may see different health deduction amounts than in the prior year (including for medical, Health Savings Account (HSA), Medical or Limited Purpose Flexible Spending Arrangement (FSA/LFSA) and/or Dependent Care Assistance Program (DCAP) plans), reflecting premium price differences or changes made during Open Enrollment.
  • Employees who hit their retirement savings limit earlier in 2025 will see retirement deductions restart in January 2026.
  • Employees enrolled in optional employee-paid long-term disability insurance will see lower premium deductions. Rates will decrease:
    • For UWRP participants with 60% coverage: from 0.59% to 0.50%.
    • For UWRP participants with 50% coverage: from 0.35% to 0.30%.
    • For DRS participants or employees with no retirement plan with 60% coverage: from 0.47% to 0.39%.
    • For DRS participants or employees with no retirement plan with 50% coverage: from 0.28% to 0.24%.
  • As part of the UWRP plan update, beginning with the first January paycheck:
    • Participants who either defaulted into UWRP or elected the UWRP optional period, and who have not been making contributions, will start making contributions (with a UW match); contribution amounts vary by age (<35 yrs = 5%; 35-49 yrs = 7.5%; 50+ yrs = 10%).
    • UWRP participants aged 50+ contributing 7.5% will see their retirement contributions increase to 10% (with a 10% UW match).

State and federal taxes:

  • Washington State’s Paid Family and Medical Leave Program premium rates will be increasing from 0.92% to 1.13% of the employee’s gross wages, up to $184,500 of taxable income.
  • Maximum earnings subject to Social Security tax increases to $184,500 for 2026. Employees who hit the Social Security cap in 2025 will see Social Security deductions resume in January 2026.
  • Employees who earn more than $200,000 may see a reduction in Medicare withholding in the early part of 2026; once annual wages exceed $200,000 for the year, a 0.9% Additional Medicare Tax will be withheld from wages and will be withheld each pay period until the end of the calendar year.