IRS Confirms: No Changes to Key Payroll Forms or Withholding Tables for 2025 under OBBBA

IRS Confirms: No Changes to Key Payroll Forms or Withholding Tables for 2025 under OBBBA

On Thursday, August 7, 2025, the IRS announced that for Tax Year 2025, the phased rollout of the One Big Beautiful Bill Act (OBBBA) will not affect the following:

• Forms W-2, 1099 series, and Form 941 (plus other standard payroll returns)

  • No Format Changes Planned

• Federal Income Tax Withholding Tables

  • No updates for 2025

• Employer Payroll Procedures

  • Keep using current reporting and withholding processes

The IRS made this decision to avoid disruptions during the upcoming tax season and ensure that payroll providers, employers, and tax professionals have adequate time to prepare for these pending changes.

🔗For More Information, visit: One Big Beautiful Bill Act of 2025 Provisions

What This Means for Employers in 2025

No Immediate Changes to your Current Processes

You can continue processing payroll exactly as you do now—but remain forward-thinking when making adjustments to current setup and procedures.

Though there are no immediate software updates, recalculations, or form changes, any considerable updates to processes and the like should be thoroughly evaluated to ensure you have an actionable plan in place for next steps.

We all Get a Little Room to Breathe

This timeline relief provides a stability window for payroll operations, especially for companies managing complex, multi-state payrolls where even minor form changes can ripple through systems.

Humanic Payroll will Remain Future-Ready

Payroll providers (like Humanic ☺️) will continue monitoring OBBBA developments so clients are ready before any required changes go live.

What's Coming in 2026

The IRS confirmed that Tax Year 2026 will bring:

• Updated Forms and Guidance, including new rules for reporting tips and overtime pay

• Coordination with employers and payroll providers to ensure a smooth transition

• Future IRS updates on how taxpayers can claim OBBBA-related tax benefits

With large-scale changes like OBBBA, the real challenge isn’t just the law itself — it’s timing, preparation, and minimizing disruption.

Humanic’s payroll platform is built to adapt to regulatory changes across multiple jurisdictions, so whether you’re running multi-state or global payroll, you’ll have the compliance tools, reporting updates, and expert guidance ready before the 2026 shift.