When Do W-2 Forms Need to Be Mailed?

A W-2 form, officially known as the Wage and Tax Statement, is a document employers provide to their employees and the Internal Revenue Service (IRS) annually. It summarizes an employee’s taxable wages and the federal, state, and local taxes withheld from their pay during the calendar year. This form is essential for both employees to accurately file their individual income tax returns and for the IRS and Social Security Administration (SSA) to track income and tax obligations.

General Deadline for Furnishing W-2s

Employers generally must furnish W-2 forms to their employees by January 31st each year. This deadline applies to both mailing paper copies and providing electronic copies, provided the employee has consented to electronic delivery. The purpose of this date is to ensure employees have sufficient time to prepare and file their tax returns before the April 15th tax deadline.

The same January 31st deadline also applies to employers filing Copy A of the W-2 form, along with Form W-3 (Transmittal of Wage and Tax Statements), with the Social Security Administration (SSA). Form W-3 acts as a summary of all W-2 forms an employer issues.

“Furnishing” a W-2 means delivering copies B, C, and 2 to the employee. Copy B is for the employee to file with their federal tax return, Copy C is for their records, and Copy 2 is for filing with state, city, or local income tax departments. Employers can consider themselves compliant if the forms are mailed on or before January 31st, assuming the mailing address is correct and the W-2s are delivered within a couple of weeks.

Situations Affecting the Deadline

The January 31st deadline can shift if it falls on a weekend or a legal holiday. In such cases, the deadline is automatically extended to the next business day.

For businesses that cease operations, the deadline for furnishing final W-2s to employees may be earlier. Employers must provide these forms by the due date of their final Form 941, 944, or 941-SS.

Employers can request an extension to file W-2 forms with the Social Security Administration by submitting Form 8809, “Application for Extension of Time to File Information Returns.” This form provides an automatic 30-day extension for filing with the SSA. However, an extension granted for filing with the SSA does not extend the deadline for furnishing W-2 forms to employees.

Consequences of Not Meeting the Deadline

Failing to meet the W-2 deadlines can result in penalties for employers. Penalties apply for late furnishing of W-2s to employees and for late filing of W-2s with the Social Security Administration. These penalties can vary based on how late the forms are provided or filed.

Employers may also incur penalties for submitting incorrect or incomplete information on W-2 forms. Common errors include incorrect employee names or Social Security Numbers, inaccurate wage or tax withholding amounts, or missing required fields. The SSA may return forms with name or Social Security number mismatches, which can lead to IRS penalties.

Penalties typically increase with the delay. They are often per-form and can be substantial, with no maximum limit for intentional disregard.

There is a possibility of penalty abatement under “reasonable cause.” This applies when an employer demonstrates ordinary business care but was unable to comply due to circumstances beyond their control. Examples of reasonable cause can include natural disasters, serious illness, or the inability to obtain necessary records.