PAYO Offers Letter to Help Employees Adjust Tax Withholding

PayrollOrg (PAYO) has made it easier for employees to adjust their tax withholding under the One Big Beautiful Bill Act (OBBBA). The law adds new tax deductions, including extra benefits for overtime pay, tips, seniors, and increases to the standard deduction and child tax credit. It also raises the limit for some state and local tax deductions.

If employees want these changes reflected in their remaining 2025 paychecks, they need to fill out a new 2025 W-4 form.

To help, PAYO created a sample letter explaining the steps. Employers can customize the letter for their staff to make the process simple.

The letter is available for download in both PDF and Word formats on the OBBBA Payroll Hot Topics webpage.