What Is the Deadline to Send Out W-2s?

Form W-2 is a document employers provide annually to their employees and the Social Security Administration (SSA). Its purpose is to report an employee’s total annual wages and the amount of federal, state, and local taxes withheld from their pay. This information is crucial for employees when preparing and filing their individual income tax returns. The W-2 also allows the IRS and SSA to track income and ensure proper contributions to Social Security and Medicare.

The Standard Deadline for W-2s

Employers must furnish Form W-2s to their employees and file them with the Social Security Administration (SSA) by January 31st of the following year. This dual deadline ensures employees have sufficient time to prepare their tax returns, and the SSA receives the necessary wage information. If January 31st falls on a weekend or a legal holiday, the deadline shifts to the next business day.

Employers typically provide W-2s to employees through mail or, with employee consent, via electronic delivery. For filing with the SSA, employers can use paper forms, often accompanied by Form W-3, or file electronically through the SSA’s Business Services Online. Employers filing 10 or more information returns, including W-2s, are generally required to file electronically.

Options for Deadline Extension

Employers can request an extension for filing W-2s with the SSA, but this does not automatically extend the deadline for furnishing W-2s to employees. An automatic 30-day extension for filing with the SSA can be requested by submitting Form 8809. This form must be filed by the original due date of the returns for which the extension is sought.

Obtaining this extension for filing with the SSA is not guaranteed and is typically granted only under extraordinary circumstances or a catastrophe. An extension for furnishing W-2s to employees is rarely granted and requires a written request to the IRS, demonstrating severe hardship. This distinction is important, as the two deadlines are treated separately regarding extensions.

Consequences of Missing the Deadline

Missing W-2 deadlines can lead to penalties for employers, which apply to both late furnishing to employees and late filing with the SSA. Penalties are tiered based on how late the forms are provided or filed. For instance, penalties can start at $60 per form if corrected within 30 days of the due date. This amount increases to $130 per form if filed more than 30 days late but by August 1st.

If W-2s are filed after August 1st or not at all, the penalty can rise to $330 per form. These penalties are assessed per W-2, meaning they can quickly accumulate for businesses with multiple employees. If the IRS determines there was intentional disregard of the filing or furnishing requirements, the penalty can be substantially higher, starting at $660 per form, with no maximum limit.