When Are Businesses Required to Send W2s?

A Form W-2, Wage and Tax Statement, serves as a fundamental document for reporting income and taxes. This form details an employee’s annual wages and the amount of federal, state, and local taxes withheld from their pay. Both employees and the Internal Revenue Service (IRS) rely on the W-2 for accurate tax reporting. The information provided on a W-2 is essential for employees to prepare their annual income tax returns.

Key Deadlines for Sending W2s

Businesses must adhere to strict deadlines for furnishing Form W-2 to their employees and filing copies with the Social Security Administration (SSA). The primary deadline for employers to send W-2 forms to employees is January 31st of the year following the calendar year in which the wages were paid. For instance, W-2 forms for the 2024 tax year must be provided to employees by January 31, 2025.

This same January 31st deadline also applies to employers filing Copy A of Form W-2 with the SSA. The SSA uses this information to post wages to an individual’s earnings record, which is crucial for determining future Social Security benefits. If January 31st falls on a Saturday, Sunday, or legal holiday, the deadline shifts to the next business day.

Employers generally cannot obtain an extension to provide W-2 forms to employees. An automatic 30-day extension to file Copy A of Form W-2 with the SSA may be available by filing Form 8809, Application for Extension of Time to File Information Returns. However, this extension only applies to the filing with the SSA, not to the requirement of furnishing the form to employees.

Businesses are expected to manage their payroll and tax reporting processes to meet these dates without needing extensions. The consistency of this deadline across years helps ensure timely tax preparation for millions of taxpayers. Compliance with these dates is a standard part of year-end payroll procedures.

Delivery Methods for W2s

Businesses typically use two main methods to deliver W-2 forms to their employees: postal mail and electronic delivery. The traditional method involves sending the printed form via the United States Postal Service to the employee’s last known mailing address. Employers are responsible for ensuring the address on file is current to facilitate proper delivery.

Electronic delivery offers a convenient alternative, often through a secure employee portal or encrypted email. For electronic delivery, employers must obtain affirmative consent from the employee before providing the W-2 electronically. This consent ensures employees are aware of and agree to receive their tax documents in a digital format. Many employees prefer electronic delivery for its speed and ease of access.

What to Do If You Don’t Receive Your W2

Employees who have not received their W-2 by the January 31st deadline should take specific steps to obtain their tax information. The initial action involves contacting the employer directly to inquire about the status of the W-2 form. Employees should verify their mailing address on file and confirm when the form was sent.

If the employer cannot provide the W-2 or resolve the issue, the employee can then contact the IRS for assistance. The IRS will require specific information to help, including the employer’s name, address, and phone number, along with their Employer Identification Number (EIN). The employee should also provide their dates of employment and an estimate of their wages and federal income tax withheld.

Should the W-2 still not be received after these steps, employees can proceed with filing their tax return using Form 4852, Substitute for Form W-2, Wage and Tax Statement. This form allows taxpayers to estimate their wages and withheld taxes based on pay stubs or other financial records. Filing with Form 4852 provides a mechanism to meet the tax filing deadline even without the official W-2.

Consequences for Businesses

Businesses that fail to comply with W-2 reporting requirements face various penalties from the IRS. Penalties are typically assessed for failure to file correct information returns with the SSA or for failure to furnish correct payee statements to employees by the due date. The penalty amount depends on how late the forms are filed or furnished.

For example, penalties can range from $60 per form if corrected within 30 days of the due date. This amount increases to $120 per form if corrected after 31 days but by August 1st, and to $310 per form if corrected after August 1st or not at all. These penalties apply to each W-2 that is not filed or furnished correctly and on time.

Intentional disregard of the filing or furnishing requirements can lead to significantly higher penalties, potentially increasing to $630 or $660 per form, with no maximum limit. Common reasons for penalties include submitting forms with incorrect information, failure to file timely, or filing on paper when required to e-file. Businesses must maintain accurate records and adhere to deadlines to avoid these financial repercussions.