Drafts of the 2026 federal tax guide for employers and the 2026 federal income tax withholding methods, including changes based on the One Big Beautiful Bill Act, Pub. L. 119-21, were released Nov. 5 by the Internal Revenue Service.
The draft Publication 15-T, Federal Income Tax Withholding Methods, provides guidance on the deductions for tips and overtime pay as introduced by the OBBBA. Employers must rely on an employee’s Form W-4, Employee’s Withholding Certificate, and Publication 15-T’s withholding methods to account for an employee’s expected deduction, the IRS said.
No changes were made to the structure of Publication 15-T’s ...
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