When Is the W2 Form Due for Employers and Employees?
Navigate W-2 form deadlines for employers and employees, ensuring timely tax reporting and avoiding penalties.
The W-2 form, or Wage and Tax Statement, is a key document in the United States tax system for employees and employers. It reports annual wages paid to an employee, along with federal, state, and local taxes withheld. This record is used by individuals when preparing their annual income tax returns.
Employer Deadlines for Issuance and Submission
Employers face specific deadlines for furnishing W-2 forms to their employees and submitting them to the Social Security Administration (SSA). Employers must provide employees with their W-2 forms by January 31 of the year following the tax year for which wages were paid. This deadline ensures employees have sufficient time to prepare their income tax returns.
The same January 31 deadline applies to employers for submitting Copy A of all W-2 forms to the SSA. This submission is crucial for the SSA to track individual earnings and social security contributions. If this date falls on a weekend or legal holiday, the deadline shifts to the next business day.
Employers submit W-2 forms to the SSA through electronic or paper filing. Electronic filing is mandated for businesses filing 10 or more information returns, including W-2s. This threshold aggregates various information returns, meaning a combination of W-2s and other forms like 1099s totaling 10 or more requires electronic submission.
For electronic submissions, employers use the SSA’s Business Services Online (BSO) platform or tax software. Paper filing necessitates the use of Form W-3, Transmittal of Wage and Tax Statements. Form W-3 acts as a summary, reporting the combined total wages and tax withholdings for all employees and must accompany all paper W-2 forms sent to the SSA.
Employee Receipt and Action
Employees should receive their W-2 form from their employer by January 31. This document is used for preparing federal, state, and local income tax returns. The W-2 provides a breakdown of wages, tips, and other compensation, along with federal income tax, Social Security tax, and Medicare tax withheld.
If an employee does not receive their W-2 by the January 31 deadline, they should contact their employer or payroll department. If the issue is not resolved, or the form is not received by mid-February, the employee can contact the Internal Revenue Service (IRS) for assistance. The IRS can attempt to contact the employer on the employee’s behalf.
Upon receipt, employees should review their W-2 for accuracy. Any discrepancies in wages, Social Security numbers, or tax withheld should be brought to the employer’s attention immediately. If an error is identified, the employer is responsible for issuing a corrected W-2, known as Form W-2c.
Extensions and Consequences of Non-Compliance
Employers who anticipate difficulty meeting the January 31 deadline for submitting W-2 forms to the SSA may apply for a 30-day extension using Form 8809, Application for Extension of Time To File Information Returns. This extension is not automatic and is typically granted only under specific circumstances, such as catastrophic events, serious illness, or data loss. It is important to note that receiving an extension to file with the SSA does not extend the separate deadline for furnishing W-2 forms to employees.
Failure to meet W-2 deadlines can lead to IRS penalties. Penalties for late filing or failure to file W-2s with the SSA vary based on how late the forms are submitted. For instance, penalties can range from $60 per form if corrected within 30 days of the due date, increasing to $310 per form if filed after August 1, with varying maximum penalty caps depending on the size of the business.
Separate penalties apply if an employer fails to furnish W-2 forms to employees by the deadline or provides incorrect information. These penalties can also start at $60 per form and increase depending on the delay or nature of the error. In cases of intentional disregard of filing requirements, penalties are significantly higher, potentially reaching $630 per form with no maximum limit. The IRS may waive penalties if the employer can demonstrate reasonable cause for non-compliance.