On August 7, 2025, the Internal Revenue Service (IRS) announced that for the 2025 taxable year, there will not be any changes to the Form W-2, existing Forms 1099, Form 941, and a few other payroll forms with the passage of the One Big Beautiful Bill Act. In addition, federal income tax withholding tables will remain the same. This means that employers can continue using current procedures for reporting and withholding for this taxable year. Updated forms and guidance are expected for the 2026 taxable year.

With respect to tax deductions for qualified tips and overtime, individual taxpayers, such as employees, should pay attention to new guidance released by the IRS in the upcoming months, as the deductions must be claimed by the taxpayer. Additional information can be found on the IRS One Big Beautiful Bill Act of 2025 provisions website.

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