The United States enters the global top ten for payroll complexity in Strada’s 2025 Global Payroll Complexity Index

• The US ranks sixth globally for payroll complexity, with a 17% increase since 2023
• Employers face rising complexity across the US’s 51 established state and jurisdictional frameworks
• Global payroll complexity rose 5% on average, with increased standardization across regions

THE WOODLANDS, TX – December 8, 2025 – Strada, a people, payroll, and technology leader that simplifies international workforce management, today unveils the 2025 Global Payroll Complexity Index (GPCI), the industry’s original and most trusted benchmark for global payroll complexity. Now in its seventh edition and running for over a decade, the 2025 GPCI reveals that global payroll complexity rose by 5 percent on average. 

Much of this increase came from North America, where several long-standing regulatory frameworks have grown more intricate since 2023. The United States reflects this shift clearly. It ranks sixth globally and enters the top ten for the first time, following a 17 percent rise in complexity. The change is rooted in the widening variation within long-established state requirements.

Top ten most complex US states for payroll in 2025:

1. California
2. New York
3. Massachusetts
4. Oregon
5. New Jersey
6. Connecticut
7. Washington
8. Delaware
9. District of Columbia
10. Rhode Island

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

California and New York remain the most complex states for payroll, driven by layered wage rules, strict payment requirements and combined state and city taxation. Massachusetts and Oregon follow, reflecting the spread of new paid-leave programs and surtaxes for high earners. Washington and New Jersey continue to add to national complexity with unique long-term care deductions and frequent rate changes.

“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 organizations that combine automation with deep payroll expertise will be best placed to turn complexity into clarity.”

Kristi Jones Senior Vice President, North America Delivery Leader at Strada

The Global Payroll Complexity Index evaluates payroll complexity across nearly 200 countries where Strada operates payroll. It draws on insights from Strada’s global network of payroll experts, who apply deep knowledge of local legislation, cultural nuances, and operational realities to help organizations run payroll efficiently and turn it into a strategic advantage.

Explore the full 2025 Global Payroll Complexity Index here: 2025 Global Payroll Complexity Index – North America Edition