Taxation and Regulatory Compliance

When Do Employers Have to Send W-2s?

Your guide to W-2 forms: understanding employer duties, critical deadlines, and employee actions for correct tax documentation.

A Form W-2, the Wage and Tax Statement, is a document employers issue to report an employee’s annual wages and the taxes withheld. This form is important for both employees and the Internal Revenue Service (IRS). Employees rely on the W-2 to accurately prepare and file their federal and state income tax returns. It provides a summary of income, federal income tax, Social Security tax, and Medicare tax withheld, along with other compensation and benefits. The IRS and the Social Security Administration (SSA) also receive copies of the W-2 to track individual tax obligations and earnings for Social Security benefit calculations.

Key Deadlines for Sending W-2 Forms

Employers must furnish Form W-2 to their employees by January 31 of the calendar year following the year wages were paid. This deadline applies regardless of whether the employee is still working for the employer. If January 31 falls on a weekend or legal holiday, the deadline shifts to the next business day.

Employers must also file Copy A of Form W-2, along with Form W-3 (Transmittal of Wage and Tax Statements), with the Social Security Administration (SSA) by January 31. Form W-3 summarizes the total wages and taxes reported on all W-2 forms for a given year. While extensions to file with the SSA might be available by submitting Form 8809, this does not extend the deadline for providing W-2s to employees.

Some states have their own specific deadlines for employers to file W-2s with state tax agencies. These may align with the federal January 31 deadline or have slight variations. Employers face penalties for late or inaccurate filings.

Employer Obligations for W-2 Delivery

W-2s can be delivered to employees through postal mail, sent to the employee’s last known address. If mailed, the form is considered furnished on the date it is postmarked.

Electronic delivery is also an option, but it comes with strict consent requirements. An employee must affirmatively consent to receive their W-2 electronically, and the employer must inform them of the hardware and software needed to access the form. Employees must also be notified that they will receive a paper form if they do not consent or if they withdraw their consent.

If an employer discovers an error on a previously issued W-2, they must correct it by issuing a Form W-2c, Corrected Wage and Tax Statement. This corrected form updates the original information and is provided to both the employee and the SSA.

Steps for Employees with Missing or Incorrect W-2s

If an employee has not received their W-2 by the January 31 deadline, or if they receive a form with incorrect information, the first step is to contact their employer. The employee should request a copy of the missing W-2 or a corrected version, and confirm that the employer has their current mailing address.

If the employer does not provide the W-2 or a corrected version by the end of February, the employee can contact the IRS for assistance. When contacting the IRS, the employee should be prepared to provide their name, address, Social Security number, dates of employment, and the employer’s name, address, and Employer Identification Number (EIN), if known. The IRS will then contact the employer and may send the employee Form 4852, Substitute for Form W-2, Wage and Tax Statement.

Even without a W-2, employees are still required to file their tax returns by the annual deadline. If the W-2 is still missing as the tax deadline approaches, Form 4852 can be used as a substitute. Employees can estimate their wages and taxes withheld using information from their final pay stub or other reliable records. If the actual W-2 is received after filing with Form 4852 and the information differs, an amended return using Form 1040-X may need to be filed.

Previous

What Does Inc VAT Mean and How Does It Affect Prices?

Back to Taxation and Regulatory Compliance
Next

Is There Tax At Restaurants and How Is It Calculated?