The IRS plans to introduce new guidance and forms for the 2026 tax year, including guidance on how overtime and tips will need to be reported. As a first step, the IRS has released a draft of the W-2 form. This is just a draft and should not be used but provides some initial insights on what changes may be ahead. The IRS also announced that in early October it will publish a list of occupations that may be eligible to take advantage of the tax break.
Earlier in August, the IRS announced that there will be no changes to individual information returns or withholding tables for the 2025 tax year. This means employers and payroll providers should continue using current procedures for Forms W-2, 1099, and 941, as well as federal income tax withholding tables. This decision is part of the phased implementation of the "One, Big, Beautiful Bill Act" and is intended to prevent disruptions.
Cascade will continue to monitor this and keep you updated.