What Is the Last Day to Send Out W2s?
Navigate W2 deadlines with confidence. Learn critical dates for employees and the SSA, plus how to ensure compliance and avoid penalties.
The Form W-2, or Wage and Tax Statement, is a crucial document detailing an employee’s annual wages and the taxes withheld from their pay. This form serves as the primary record for individuals to accurately file their federal, state, and local income tax returns. For the Internal Revenue Service (IRS), the W-2 provides essential information about income and payroll taxes reported by employers.
The Primary Deadline for Employees
Employers are required to furnish Form W-2 to their employees by January 31st each year. This deadline applies regardless of whether the W-2 is provided as a physical paper copy sent through the mail or delivered electronically. Employees must receive their W-2s by this date to prepare their tax returns.
This January 31st date is a federal mandate, ensuring employees have sufficient time to file their individual income tax returns accurately. For employees who consent to electronic delivery, the digital version of the W-2 must also be made available by this same date.
Dealing with Deadline Specifics
The January 31st deadline for furnishing W-2s to employees can shift if it falls on a weekend or a legal holiday. In such instances, the deadline is automatically extended to the next business day.
For example, if January 31st falls on a Saturday, the deadline would move to the following Monday, assuming it is not a holiday. Employers should always verify the exact due date for a given year to ensure timely compliance.
Penalties for Non-Compliance
Employers who fail to furnish W-2s to employees by the January 31st deadline, or who provide incorrect or incomplete information, can face penalties from the IRS. These penalties are not a flat fee but vary depending on how late the forms are provided and the size of the business. For instance, penalties can start at $60 per Form W-2 if filed within 30 days of the due date.
The penalty increases if the forms are filed more than 30 days late, reaching $130 per form if filed by August 1st. If W-2s are filed after August 1st or not at all, the penalty can be as high as $330 per form. Additionally, intentional disregard of the filing requirements can lead to a penalty of $660 per W-2. These penalties are assessed per individual W-2, meaning they can accumulate quickly for businesses with multiple employees.
Understanding the Filing Deadline for the Social Security Administration
Beyond furnishing W-2s to employees, employers also have a separate, but often coinciding, deadline for filing these forms with the Social Security Administration (SSA). The federal filing deadline for employers to submit copies of Form W-2 to the SSA is generally also January 31st. This deadline applies whether the forms are filed on paper or electronically.
When filing W-2s with the SSA, employers must also include Form W-3, known as the Transmittal of Wage and Tax Statements. Form W-3 serves as a summary document that reports the combined total wages and withholding amounts for all employees. The SSA uses Form W-3 to reconcile the information provided on all the individual W-2s submitted by an employer.