[US] US enters Strada’s payroll complexity Top 10 for first time

The people, payroll, and technology services provider Strada has released its 2025 Global Payroll Complexity Index (GPCI) and announced that the US has entered its Top 10.

The GPCI is a trusted benchmark within the global payroll industry and is now in its seventh edition.

The 2025 GPCI reportedly reveals that global payroll complexity rose by 5 per cent on average. 

A large proportion of the increase came from North America, where several long-standing regulatory frameworks have become more intricate since 2023. 

The US reflects this shift, ranking sixth globally and entering the top ten for the first time, following a 17 per cent rise in complexity. Strada says the change is due to the widening variation within long-established state requirements.

The Top 10 most complex US states for payroll in 2025 were found to be:

• California

• New York

• Massachusetts

• Oregon

• New Jersey

• Connecticut

• Washington

• Delaware

• District of Columbia

• Rhode Island

US payroll complexity reportedly continues to rise across 51 established states and jurisdictions, each with its own rules and reporting requirements. Increased variation at the state level, together with the growth of hybrid and remote work, is making accurate multi-state tax compliance a greater challenge for employers.

California and New York are still the most complex states for payroll, thanks to layered wage rules, strict payment requirements and combined state and city taxation. Massachusetts and Oregon are next, reflecting the spread of new paid-leave programs and surtaxes for high earners. 

Washington and New Jersey reportedly continue to add to national complexity with unique long-term care deductions and frequent rate changes.

Kristi Jones - Strada Senior Vice President, North America Delivery Leader - said, “The US payroll landscape is evolving fast. Managing compliance across 51 jurisdictions has become a constant challenge, even for the most experienced teams. Technology can ease the pressure, but human insight remains vital. The organisations that combine automation with deep payroll expertise will be best placed to turn complexity into clarity.” 

The Global Payroll Complexity Index evaluates payroll complexity across nearly 200 countries where the company operates payroll. 

The full 2025 Global Payroll Complexity Index can be found here

Source: Strada

(Links and quote via original reporting)

The people, payroll, and technology services provider Strada has released its 2025 Global Payroll Complexity Index (GPCI) and announced that the US has entered its Top 10.

The GPCI is a trusted benchmark within the global payroll industry and is now in its seventh edition.

The 2025 GPCI reportedly reveals that global payroll complexity rose by 5 per cent on average. 

A large proportion of the increase came from North America, where several long-standing regulatory frameworks have become more intricate since 2023. 

The US reflects this shift, ranking sixth globally and entering the top ten for the first time, following a 17 per cent rise in complexity. Strada says the change is due to the widening variation within long-established state requirements.

The Top 10 most complex US states for payroll in 2025 were found to be:

• California

• New York

• Massachusetts

• Oregon

• New Jersey

• Connecticut

• Washington

• Delaware

• District of Columbia

• Rhode Island

US payroll complexity reportedly continues to rise across 51 established states and jurisdictions, each with its own rules and reporting requirements. Increased variation at the state level, together with the growth of hybrid and remote work, is making accurate multi-state tax compliance a greater challenge for employers.

California and New York are still the most complex states for payroll, thanks to layered wage rules, strict payment requirements and combined state and city taxation. Massachusetts and Oregon are next, reflecting the spread of new paid-leave programs and surtaxes for high earners. 

Washington and New Jersey reportedly continue to add to national complexity with unique long-term care deductions and frequent rate changes.

Kristi Jones - Strada Senior Vice President, North America Delivery Leader - said, “The US payroll landscape is evolving fast. Managing compliance across 51 jurisdictions has become a constant challenge, even for the most experienced teams. Technology can ease the pressure, but human insight remains vital. The organisations that combine automation with deep payroll expertise will be best placed to turn complexity into clarity.” 

The Global Payroll Complexity Index evaluates payroll complexity across nearly 200 countries where the company operates payroll. 

The full 2025 Global Payroll Complexity Index can be found here

Source: Strada

(Links and quote via original reporting)