IRS delays payroll form changes until 2026 under new tax law

The IRS issued IR-2025-82 on Aug. 7 confirming that major payroll and reporting forms — including W-2s, 1099s and Form 941 — will remain unchanged for the 2025 tax year despite the recently passed One Big Beautiful Bill Act. Federal withholding tables will also stay the same, allowing employers and payroll providers to maintain current processes through the next filing season. 

Officials said the pause is meant to prevent mid-season disruptions and give all parties time to prepare for the law’s rollout. The agency, already facing staffing shortages with over 25% of employees reportedly gone this year, is targeting 2026 for the first wave of changes, including new rules for reporting tips and overtime. 

Further guidance from the IRS and Treasury is expected in the coming months, outlining how taxpayers can claim benefits under the new law and how reporting entities should update their systems ahead of the 2026 tax year. 

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