Alabama – Withholding Guidance for Nonresident Employees
The Alabama Department of Revenue has clarified that employers should withhold Alabama income tax from nonresident employees only for wages attributable to services physically performed in the state—including remote work. Although a 2023 tribunal ruling upheld taxation of an employee working remotely from Idaho for an Alabama employer, the Department has stated that it will not follow that decision. Employers should also note Alabama’s 30-day safe harbor, which generally exempts qualifying nonresidents who work in the state for 30 or fewer days during a calendar year, and that Alabama has no reciprocity agreements with neighboring states.
Illinois – Incorrect Failure to File Monthly Wage Report Letters
Thomas & Company has been made aware by the Illinois Department of Employment Security, Service Bureau Team that some employers may have incorrectly received Failure to File Monthly Wage Report letters for August 2026, even if reports were accurately and timely filed. An investigation is ongoing to address the issue, and the state will provide an update once a solution is in place.
Indiana – Disaster Unemployment Assistance Benefits Available for Individuals in Three New Counties
Disaster Unemployment Assistance (DUA) is now available to individuals in three new counties who were affected by severe weather in August. Impacted individuals in Pike, Cass, and Putnam counties may now be eligible for DUA benefits. Previously announced counties are Carroll, Dearborn, Decatur, Delaware, Fayette, Franklin, Hamilton, Hancock, Henry, Lake, LaPorte, Madison, Marion, Morgan, Porter, Pulaski, Randolph, Rush, Tipton, Union, and Wayne.
As a reminder, DUA is an unemployment insurance benefit made available after a disaster and is only available to individuals who:
- Have applied for and used all regular unemployment benefits from any state, or do not qualify for unemployment benefits.
- Worked or were self-employed or scheduled to begin work or self-employment in the disaster area.
- Can no longer work or perform services because of physical damage or destruction to the place of employment as a direct result of the disaster.
- Establish that the work or self-employment they can no longer perform was their primary source of income.
- Cannot perform work or self-employment because of an injury as a direct result of the disaster.
- Became the breadwinner or major support of a household because of the death of the head of household.
Individuals must apply for regular benefits by visiting the Uplink Claimant Self-Service System at uplink.in.gov/CSS/CSSLogin.htm. If denied regular benefits, they can then apply for DUA, the process for which they can begin by filling out this form.
The application deadline is October 27,2026 for previously announced counties and November 30, 2026 for these three newly added counties.
Massachusetts – Weekly Benefit Amount Increase Effective October 4
For new initial claims filed on or after October 4, 2026, the maximum weekly benefit amount (WBA) has increased for Massachusetts claimants. The new maximum WBA will be $1,154 (up from $1,105).
Ohio – Disaster Unemployment Assistance Benefits Now Available
Disaster Unemployment Assistance (DUA) is now available to individuals in Ohio who were affected by severe weather, including 17 confirmed tornadoes, August 10-22, 2026. Impacted individuals in Clermont, Franklin, Hamilton, Licking, Morgan, Muskingum, and Perry counties may be eligible for DUA benefits.
Individuals may file a DUA claim by calling 1-877-644-6562. The application deadline is December 1, 2026.
Pennsylvania – Separation Due to Domestic Violence Information for Employers
Earlier this year, a new provision, Section 402.7, was added to Pennsylvania UC law, providing individuals who have separated from employment due to domestic violence unemployment benefit eligibility. While employers will still receive fact-finding and claim requests, to protect claimant confidentiality and ensure compliance, employers will not receive non-monetary determinations or additional details associated with the claim.
Determinations for these separations will always find the claimant eligible and cannot be appealed. However, employers will automatically receive relief from charges for these separations. If any information is later received that indicates this was not the correct reason for separation, a new determination will be issued.
Texas – Weekly Benefit Amount Increase Effective October 4
For new initial claims filed on or after October 4, 2026, weekly benefit amounts (WBA) have increased for Texas claimants. The new maximum WBA will be $619 (up from $605) while the new minimum WBA will be $76 (up from $75).
Upcoming Q3 Reporting Deadline Reminder
As a reminder, quarterly filings are coming due in many states. Don’t forget to file the necessary payroll and leave reports and make appropriate payments. For many states, the upcoming filing deadline for Q3 is October 31, but check with all relevant states to ensure you meet these important deadlines.
Wisconsin – Disaster Unemployment Assistance Benefits Now Available
Disaster Unemployment Assistance (DUA) is now available to individuals in Wisconsin who were affected by severe weather and tornadoes that occurred on July 27, 2026. Impacted individuals in Forest, Outagamie, Vilas, and counties may be eligible for DUA benefits.
Individuals should apply online at my.unemployment.wisconsin.gov. Individuals who need assistance or are unable to access online resources can call the DUA Hotline at (608) 318-7100.
The application deadline is December 7, 2026.