When Are Tax Forms Due to Employees?

Employers and other payers have responsibilities to provide individuals with tax forms detailing income. These forms are fundamental for individuals to prepare and file their tax returns. The Internal Revenue Service (IRS) also uses these documents to track income and withholdings. Timely and accurate issuance of these forms is important for taxpayers and the tax system.

Reporting Employee Wages (Form W-2)

Employers must furnish Form W-2, “Wage and Tax Statement,” to each employee who received wages, tips, or other compensation during the calendar year. This form details the gross wages paid, along with federal, state, and local income taxes withheld, and Social Security and Medicare taxes.

The deadline for employers to provide Form W-2 to their employees is January 31st of the year following the calendar year in which the wages were paid. If this date falls on a weekend or a legal holiday, the deadline automatically shifts to the next business day. Employees rely on this form to complete their tax returns. An “employee” for W-2 purposes is typically someone whose work is controlled by the employer, distinguishing them from independent contractors.

Reporting Nonemployee Compensation (Form 1099-NEC)

For individuals who are not considered employees but provide services to a business, Form 1099-NEC, “Nonemployee Compensation,” is used. This form reports payments of $600 or more made in the course of a trade or business for services rendered. It serves a similar function to the W-2 for non-employees.

Form 1099-NEC is specifically for non-employees and should not be issued to individuals who receive a W-2. The deadline for furnishing Form 1099-NEC to recipients is also January 31st of the year following the calendar year in which the compensation was paid.

Other Information Returns (Forms 1099-R and 1095-B/C)

Beyond wages and nonemployee compensation, individuals may receive other information returns detailing income or health coverage. Form 1099-R, “Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.,” reports distributions of $10 or more from retirement accounts and other specified plans. The deadline for payers to furnish Form 1099-R to recipients is January 31st.

Additionally, Forms 1095-B and 1095-C report health care coverage information as mandated by the Affordable Care Act (ACA). Form 1095-B is generally provided by health insurance providers and certain small self-insured employers, while Form 1095-C is issued by Applicable Large Employers (ALEs). For the 2024 tax year, the deadline for furnishing these forms to individuals has been automatically extended from January 31, 2025, to March 3, 2025. This extension aims to provide additional time for employers and providers to comply with the reporting requirements.

Delivering Tax Forms

Employers and other payers have specific guidelines for delivering these tax forms to recipients. The most common method involves mailing paper copies via the U.S. Postal Service to the recipient’s last known address. Maintaining accurate address records is therefore crucial to ensure timely and proper delivery.

Electronic delivery is also a permissible method for furnishing these statements, but it comes with specific requirements. Recipients must affirmatively consent to receive their statements electronically. This consent typically involves a clear disclosure of hardware and software requirements needed to access the electronic forms, and the recipient’s right to withdraw consent or request a paper copy. The aim is to ensure that individuals can reliably access their tax documents in a digital format if they choose.