When Is the Last Day to Send Out W-2s?
Understand critical W-2 deadlines, proper submission methods, and how to avoid penalties. A comprehensive guide for employers.
A Form W-2, known as the Wage and Tax Statement, is an Internal Revenue Service (IRS) document that employers provide to employees annually. This form summarizes an employee’s total wages, salary, and other compensation, along with federal, state, and other taxes withheld from their pay during the calendar year. Employees rely on the W-2 for accurate income tax return filing, as it details the income earned and taxes already paid. The IRS also uses this form to track individual tax obligations and verify reported income.
The Primary W-2 Deadline
Employers must furnish Form W-2 to their employees by January 31st each year. Employers must also file Copy A of each W-2 form with the Social Security Administration (SSA), along with Form W-3, Transmittal of Wage and Tax Statements, by the same January 31st deadline. Form W-3 acts as a summary of all W-2 forms submitted by an employer.
If January 31st falls on a weekend or a legal holiday, the deadline shifts to the next business day. Some states may have different deadlines for state tax reporting purposes.
How to Send W-2s
Mailing W-2 forms to the employee’s last known address is a common practice. If mailed, the W-2 forms must be postmarked by the January 31st deadline.
Electronic delivery is another option, often preferred for its efficiency and security. Employers can provide W-2s electronically if they obtain affirmative consent from the employee. Consent must be provided electronically, confirming the employee can access the electronic format. Employees must also be informed of the hardware and software requirements needed to access the electronic form.
Hand-delivery of W-2 forms directly to employees is also permissible. Regardless of the method, employers are responsible for ensuring employees receive their W-2s by the stated deadline. Employers must also provide a paper copy if an employee does not consent to electronic delivery or withdraws their consent.
Penalties for Late W-2s
Failing to meet the W-2 deadlines can result in penalties from the IRS. Penalties apply for both late furnishing of W-2s to employees and late filing of W-2s with the Social Security Administration. The amount of the penalty depends on how late the forms are provided or filed. Penalties can range from $60 per form if filed correctly within 30 days of the due date, increasing to $130 per form if filed more than 30 days late but by August 1st.
If forms are filed after August 1st, or not filed at all, the penalty increases to $330 per form. These penalties are assessed per W-2 form. In cases of intentional disregard of filing requirements, the penalty is substantially higher, potentially reaching $500 per failure or 10% of the aggregate amount of items required to be reported correctly, with no maximum limit.
Correcting W-2s and Requesting Extensions
If an error is discovered on a W-2 form after it has been issued, employers must correct it using Form W-2c, Corrected Wage and Tax Statement. Common errors requiring correction include incorrect names, Social Security Numbers, or wage amounts. If the original W-2s were filed with the SSA, a corresponding Form W-3c, Transmittal of Corrected Wage and Tax Statements, must also be filed with the SSA along with the W-2c forms.
Employers can request an extension of time to file W-2s with the SSA by using Form 8809, Application for Extension of Time to File Information Returns. This form provides an automatic 30-day extension to file with the SSA. This extension applies to filing with the SSA and does not automatically extend the deadline for furnishing W-2s to employees, unless specific hardship criteria are met. Extensions for furnishing W-2s to employees are not automatic and are granted only under specific circumstances, such as catastrophic events or a business’s first year of operations.