When Are Companies Required to Send Out W-2s?
Grasp the essential process and regulatory requirements for companies issuing W-2 forms, ensuring timely and accurate employee tax documentation.
The W-2 form, officially known as the Wage and Tax Statement, is an annual document employers must provide to employees and the Social Security Administration (SSA). This form is crucial for both employees, who need it to accurately file their federal and state income tax returns, and government agencies, which use it to verify reported income and withheld taxes.
Key Deadlines for Employee W-2s
Employers must furnish Form W-2 to their employees by January 31st of the year following the tax year. For instance, W-2 forms for the 2024 tax year are due to employees by January 31, 2025. If this January 31st deadline falls on a weekend or a legal holiday, the due date is automatically extended to the next business day. The legal requirement for employers to meet this deadline is a federal mandate, and failure to do so can result in penalties.
Information Contained and Delivery Methods
A W-2 form details essential financial information for both the employee and the employer. It includes the employee’s name, address, and Social Security number, along with the employer’s name, address, and Employer Identification Number (EIN). The core of the W-2 summarizes wages, tips, and other compensation, as well as federal income tax, Social Security tax, Medicare tax, and any state or local income taxes withheld from the employee’s pay. It may also report other compensation or benefits, such as contributions to retirement plans or health savings accounts.
Employers typically deliver W-2 forms through mail or secure electronic means. When mailing, forms must be postmarked by the January 31st deadline. For electronic delivery, employers must obtain explicit consent from the employee. This consent usually requires the employee to confirm their ability to access the statement in the electronic format it will be furnished. Employees must also be informed of how to withdraw consent and any conditions under which electronic delivery might cease.
Employer Filing Requirements with Government Agencies
Beyond providing W-2s to employees, employers also have a separate obligation to file copies of these forms with the Social Security Administration (SSA). This filing includes Copy A of all W-2s, along with a summary document called Form W-3, Transmittal of Wage and Tax Statements. Form W-3 summarizes the total wages and withholding amounts reported on all accompanying W-2 forms, providing an overview for the SSA and IRS to verify reported income and FICA taxes.
The general deadline for employers to file W-2s and Form W-3 with the SSA is also January 31st. For many employers, electronic filing is mandatory; those filing 10 or more W-2s are typically required to submit them electronically to the SSA. While the federal deadline is consistent, state and local tax agencies may have their own distinct deadlines for W-2 filings, which can vary. Employers must consult specific state tax authority guidelines to ensure compliance with all applicable requirements.
Resolving Missing or Incorrect W-2s
If an employee does not receive their W-2 by the January 31st deadline, or if the form received contains errors, there are specific steps to take. The initial action is to contact the employer’s payroll or human resources department directly to request a copy or a correction. If the employer does not provide the missing or corrected W-2 by the end of February, the employee can then contact the Internal Revenue Service (IRS) for assistance.
When contacting the IRS, individuals should be prepared to provide their name, address, Social Security number, dates of employment, and the employer’s name, address, and phone number. The IRS may then contact the employer to request the missing form and can provide the employee with Form 4852, Substitute for Form W-2, Wage and Tax Statement, to estimate wages and taxes for filing purposes. For errors on a received W-2, the employer is responsible for issuing a corrected Form W-2c, Corrected Wage and Tax Statement. While there is no specific deadline for filing Form W-2c, employers should correct errors promptly.