Executive Order 14247: How the End of Paper Checks Impacts Mobility Programs

• Start of phase-out: Paper checks for federal disbursements and IRS refunds will begin to be phased out on September 30, 2025, rather than being fully eliminated on that date.
• Guidance from IRS coming soon: The IRS will publish detailed guidance for 2025 tax returns before the 2026 filing season.
• Current procedures remain: Until further notice, taxpayers should continue using existing forms and processes for federal payments and refunds. 

 Federal payments are going digital. Starting September 30, 2025, paper checks for IRS refunds and federal disbursements will begin to be phased out. Mobility programs should start preparing now to ensure employees’ banking, tax, and payroll processes stay seamless. Detailed IRS guidance is coming soon, but early planning is key.

What’s changing

Starting September 30, 2025, paper checks for federal disbursements, including IRS refunds and tax payments, will begin to be phased out, marking the first step in the IRS’s broader move to electronic payments. Executive Order 14247 dictates that electronic channels such as Direct Pay, EFTPS, IRS Online Account, ACH, and debit/credit card processors will become the required standard. While a few narrow exceptions exist, nearly all mobile employees will need to transact electronically.

For relocating employees, this change impacts how and when they receive refunds or make payments. Ensuring U.S. bank accounts are active, up-to-date, and properly documented is critical. Employees may need guidance navigating these digital-only processes, especially if they are experiencing them for the first time.

Why it matters

The transition is about more than compliance—it directly shapes the employee experience during relocations. Key considerations include:

• Employee access and continuity: Mobile employees must maintain secure banking options to receive refunds and pay taxes electronically.

• Identity verification and timing: Online IRS payments require personal data, making timely submission of remittance statements essential.

• Clear communication: Employees benefit from proactive guidance on how payments and refunds will be handled.

• Operational alignment: Payroll, tax providers, and mobility programs must coordinate to prevent delays and ensure smooth processes.

• Risk Mitigation: Incorrect banking information will cause delays or disruptions. 

By addressing these areas, mobility programs can reduce friction, minimize stress, and maintain a positive employee experience while meeting compliance requirements. This is an opportunity to make digital transitions feel seamless, rather than disruptive, for relocating employees.

What do I need to do?

The shift to electronic federal payments is underway. Beginning September 30, 2025, paper checks will start to be phased out. Mobility programs should use this lead time to confirm readiness — not only from a systems and compliance standpoint, but also in terms of the employee experience.

Verifying banking details, aligning payroll and tax processes, and ensuring employees understand the steps they need to take are essential for maintaining confidence and minimizing disruption. While the transition to digital payments is operationally necessary, its true success will be measured by how smoothly it supports employees throughout their mobility journey. Here's how to get ready:

• Review and confirm employee banking information to guarantee accuracy and completeness.

• Refresh onboarding and relocation resources to reflect updated payment procedures.

• Communicate early and often with employees about upcoming changes and preparation steps.

• Collaborate with payroll and tax partners to synchronize systems and timelines and create and conduct readiness assessments to proactively address any issues.

This shift is a reminder of how important it is for mobility programs to maintain seamless compensation processes that support both compliance and the employee experience. Graebel’s Compensation Services are designed to simplify payroll, tax and reimbursement complexities, helping organizations stay ahead of changes while ensuring employees feel confident throughout their journey. If you’d like to explore how we can support your program, please reach out—we’re here to help.