The IRS said it will not make changes to certain information returns or withholding tables for tax year (TY) 2025 due to the One Big Beautiful Bill Act (OBBBA) [IR-2025-82, 8-7-25].
The IRS specified that Form W-2, existing Forms 1099, Form 941, and “other payroll return forms” will remain unchanged for TY 2025. The IRS will also not update federal income tax withholding tables for OBBBA provisions for TY 2025.
The agency said employers and payroll providers should continue to use current procedures for reporting and withholding. The IRS said it made these decisions to avoid disruptions during the tax filing season and to give the IRS, businesses, and tax professionals enough time to implement the changes effectively.
The IRS said it is working on guidance and updated forms for TY 2026, including changes to how tips and overtime pay are reported. The IRS said it will coordinate with employers and payroll providers to ensure a smooth transition.
To learn how the OBBBA will affect your year-end processing and to prepare for changes in 2026, plan to attend one of PayrollOrg’s Preparing for Year-End programs this fall. This seminar provides updates on the latest changes in legislation and regulations that affect the close of 2025 and the first payroll of 2026.
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!
Jyme Mariani, Esq., is Director of Payroll Information Resources for PayrollOrg.