The IRS released IR-2026-105 on September 4, 2026, urging workers to check their tax withholding and employers to review payroll tax processes ahead of National Payroll Week, observed September 7-11. The timing is deliberate: payroll errors discovered after year-end cost more to fix than those caught now, and the IRS wants both sides of the pay stub to use the week as a checkpoint.
For Workers: Is Your Withholding Still Accurate?
Federal income tax is withheld from each paycheck based on earnings and what you told your employer on Form W-4. If anything in your life has changed, your W-4 may no longer reflect your actual tax situation. The IRS flagged these events as common triggers for a withholding review:
- Starting or leaving a job
- Working multiple jobs simultaneously
- Marriage or divorce
- Birth or adoption of a child
- A significant change in income
The IRS Tax Withholding Estimator is free and walks you through the calculation using recent pay statements, income, deductions, and credits. If the estimator shows an adjustment is needed, it also helps you fill out a new W-4. Submit that form to your employer, not to the IRS.
For Employers: Five Things to Verify Right Now
The IRS listed five core payroll responsibilities it’s asking employers and payroll professionals to confirm are running correctly:
- Withhold accurately. Federal income tax, Social Security, and Medicare must be withheld from employee wages.
- Deposit electronically. Federal tax deposits must be made by electronic funds transfer. Options include the Electronic Federal Tax Payment System (EFTPS), IRS Direct Pay for businesses, and Business Tax Account.
- File on time. Forms 940, 941, 943, 944, and 945 can all be filed electronically.
- Keep records. Retain all employment records for at least four years.
- Protect payroll data. Verify any changes to direct deposit or employee information through a trusted channel. Limit who has access to payroll systems. Use multifactor authentication. Stay alert to phishing and credential theft.
Publication 15 (Circular E), Employer’s Tax Guide, and Publication 15-T, Federal Income Tax Withholding Methods, are the IRS’s primary references for employers working through these requirements.
Free Webinar September 8
The IRS is hosting a free webinar on September 8 titled “IRS and Payroll Professionals: Partners in Every Paycheck.” The agenda includes federal employment tax deposits, Trump Account employer contributions, 2026 Form W-2 reporting changes, and IRS payroll resources. Payroll professionals can register through the IRS Payroll Professionals Tax Center.
What This Means for Your Business
Payroll tax is one of the areas where the IRS moves quickly on penalties. Deposit failures and misclassification of withholding amounts don’t sit long before they generate notices and assessments. If you’ve added employees, changed pay schedules, or moved operations across state lines since your last payroll review, this week is a practical moment to check the setup.
BCA works with owner-operators on employment tax compliance, deposit scheduling, and record-keeping obligations. If you’d like a payroll compliance review, contact us.
This article is for general educational purposes only and does not constitute legal, tax, or accounting advice. Tax rules change frequently and individual circumstances vary. Consult a qualified tax advisor for guidance specific to your situation.
Educational information only, not licensed legal, tax, or financial advice. We refer to and partner with licensed professionals when personalized advice is needed. Laws change; no warranty of accuracy or timeliness.
Sources
IRS IR-2026-105, September 4, 2026: IRS reminder: National Payroll Week is time for a paycheck checkup