Potential Federal Government Shutdown

At A Glance

• If the United States federal government fails to pass a budget by September 30, 2025, a federal government shutdown will begin at midnight on Wednesday, October 1, 2025. 
• Several federal agencies will be impacted.

Introduction

A federal government shutdown affects all federal agencies, including the Department of Homeland Security (DHS) and its component agency, the United States Citizenship and Immigration Services (USCIS). In such cases, E-Verify services are unavailable during the shutdown period.

E-Verify

When E-Verify is unavailable due to a federal government shutdown, employers will not be able to access their E-Verify accounts or: 

• Enroll in E-Verify
• Create E-Verify cases
• View or take action on any case
• Add, delete or edit any user account
• Reset passwords
• Edit company information
• Terminate accounts
• Run reports or view any information about an account

However, during an E-Verify outage, employers are still required to complete Form I-9 for new hires, and after E-Verify is again available, employers should process E-Verify cases as required. 

IRS Operations

The Internal Revenue Service (IRS) will continue to collect taxes and accept filings throughout the shutdown. As such, Paylocity will continue to make employer deposits and submit tax returns (i.e., 940, 941, 943, 945, etc.) and Forms W-2, W-2C, 1094-C, and 1095-C on behalf of clients.

Correspondence with and processing at the IRS, including amended returns, may take additional time due to delays caused by the shutdown.

Next Steps

Businesses are encouraged to stay informed on developments related to the shutdown. Paylocity will, similarly, continue to monitor developments provide updates as needed.