On September 4, 2026, the IRS issued IR-2026-105, encouraging workers and employers to review withholding and payroll tax responsibilities ahead of National Payroll Week, observed September 7–11.
Workers Can Review Withholding
Employees generally have federal income tax withheld from each paycheck based on their earnings and the information on Form W-4, Employee’s Withholding Certificate. The IRS recommends checking withholding after major life or income changes, such as starting or leaving a job, working multiple jobs, marriage, divorce, a new child, or a significant income change.
The IRS Tax Withholding Estimator can help an employee assess whether too much or too little federal income tax may be withheld. If an adjustment is appropriate, the employee can use the estimator’s results to help complete a new Form W-4 and submit it to the employer—not to the IRS.
Employers Should Keep Payroll Taxes on Track
Employers generally remain responsible for withholding, reporting, and depositing employment taxes when they outsource payroll, although liability can differ for certain third-party arrangements. Payroll professionals may help employers perform these duties. The IRS highlighted several recurring responsibilities:
- Withhold applicable federal income, Social Security, and Medicare taxes from employees’ wages
- Make federal tax deposits by electronic funds transfer using an available method
- File applicable employment tax returns on time
- Keep employment tax records for at least four years
- Protect payroll systems and verify changes to direct-deposit or employee information through a trusted channel
The applicable forms, deposit schedule, and payment options depend on the employer’s circumstances. Publication 15 explains general federal employment tax responsibilities, while Publication 15-T provides withholding methods and tables.
Protect Payroll Access and Data
The IRS recommends limiting access to payroll systems, using multifactor authentication, and watching for phishing and credential theft. Requests to change employee details or direct-deposit instructions should be verified through a trusted channel rather than accepted solely from an unexpected message.
Eligible users may have electronic payment options that include EFTPS, IRS Direct Pay for businesses, or Business Tax Account. Businesses should confirm that a service supports their tax type and transaction before relying on it.
Why It Matters for Schedule C Filers
A Schedule C filer with no employees generally handles estimated income tax and self-employment tax rather than employee withholding. Once a business hires employees, separate federal employment tax, filing, deposit, and recordkeeping obligations may apply. Personal withholding from another job and business payroll records should remain accurately categorized.
Simple-C helps Schedule C filers keep business income and expenses organized — while payroll records and employment tax compliance require their own timely processes when the business has employees.
This article provides general information, not tax advice. Withholding and employment tax requirements depend on the facts and current law. Confirm the applicable details on IRS.gov.