IRS Keeps 2025 Withholding and Reporting Rules the Same

The IRS announced that there will be no changes to common payroll and reporting forms for Tax Year 2025 as part of the phased rollout of the One Big Beautiful Bill Act (OBBBA).

For 2025, employers and payroll providers should continue using current procedures. Form W-2, existing Forms 1099, Form 941, and other payroll returns remain unchanged. Withholding tables also stay the same.

The IRS explained this decision helps avoid disruption during the filing season and allows time for businesses, tax professionals, and the agency itself to prepare for upcoming changes.

Looking ahead to 2026, the IRS is working on updated guidance and forms. These are expected to address how tips and overtime pay are reported. The agency will coordinate with payroll providers, employers, and tax professionals to help make the transition smooth.

Additional information on claiming OBBBA-related benefits will be shared before the 2026 filing season.

For details on OBBBA provisions, visit the IRS website.