The “One Big Beautiful Bill Act”, also known as H.R.1, has promised to bring enormous change for organizations and its people. While the timing of the bill’s provisions is sometimes impossible to predict, we will continue to relay impactful information as we become aware of it.  

Planning for Tax Year 2025 

Recently, the Internal Revenue Service (IRS) announced there will be no changes to some information returns and withholding tables for Tax Year 2025 related to the new law.  

According to the IRS: 

• Form W-2, existing Forms 1099 and Form 941 will remain unchanged for 2025 
• There will be no change to federal income tax withholding tables in 2025 
• Employers and payroll providers are advised to use existing procedures for reporting and withholding 

While the bill does introduce sweeping new changes, like fewer taxes to tips and overtime, employers should continue to use current procedures for withholding and reporting.  

Looking Ahead to 2026 

Why the delay in impact? The IRS requires additional time for tax professionals to implement changes. The IRS is working on new guidance and updated forms for Tax Year 2026. Major changes are expected in how tips and overtime pay are reported. The IRS indicates it will coordinate with employers, payroll providers and tax professionals to ensure a smooth transition.  

Stay Ahead of the Curve 

The IRS promises more information will be shared in upcoming months about how taxpayers can claim tax benefits related to the One Big Beautiful Bill Act when they file their returns. The U.S. Department of the Treasury and IRS are preparing additional guidance for both reporting entities and individual taxpayers. 

As more information and clarification related to the One Big Beautiful Bill Act comes to light, our team will continue to pass along updates that will impact your business and your people.  

Want to stay ahead of the curve when it comes to compliance updates? Get in touch with our dedicated team of HR professionals here. 

_{Disclaimer. The information provided herein is for general informational purposes only and is not intended to be legal, investment or tax advice. It is not a substitute for professional legal, investment or tax advice, and you should not rely on it as such. No attorney-client or accountant-client relationship or any other kind of relationship is formed by any use of this information. The effective date of various provisions, amendments, and regulatory guidance may impact eligibility. The accuracy, completeness, correctness or adequacy of the information is not guaranteed, and isolved assumes no responsibility or liability for any errors or omissions in the content. You should consult with an attorney, investment professional or tax professional for advice regarding your specific situation.} 

Print