When Should Employers Send Out W2s?

Employers must issue Form W-2, Wage and Tax Statement, to their employees, reporting wages paid and taxes withheld. This document is a fundamental part of the tax filing process for both individuals and the Internal Revenue Service (IRS). Understanding the timeline for W-2 distribution is important for employees to file their tax returns accurately and on time, and for employers to maintain compliance with federal regulations.

The Primary Deadline for W2s

The primary deadline for employers to furnish W-2 forms to their employees is January 31st of the year following the tax year for which wages were paid. This deadline applies whether provided via physical mail or electronic delivery, provided the employee has consented to electronic delivery. For example, W-2 forms for the 2024 tax year must be sent to employees by January 31, 2025.

The same January 31st deadline also applies to employers filing Copy A of Form W-2, along with Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration (SSA). This dual deadline helps the IRS and SSA verify income reported by individuals. If January 31st falls on a weekend or legal holiday, the deadline shifts to the next business day.

Extensions to the Deadline

While the deadline for furnishing W-2s to employees is generally fixed, employers may obtain an extension for filing W-2s with the Social Security Administration (SSA). An employer can request an automatic 30-day extension by filing Form 8809, Application for Extension of Time to File Information Returns, with the IRS. This form must be submitted by the original due date of the W-2s.

This extension primarily applies to filing W-2s with the SSA and does not typically extend the deadline for furnishing copies to employees. In specific circumstances, such as a federally declared disaster, the IRS may grant special relief that impacts the employee furnishing deadline. However, for most situations, employees should still expect their W-2 by January 31st.

Penalties for Late W2s

Employers face penalties for failing to meet the W-2 deadlines, both for late filing with the Social Security Administration (SSA) and for late furnishing to employees. These penalties increase based on how late the forms are filed or furnished. Penalties for late or incorrect W-2s can range from $60 to $660 per form, depending on the length of the delay.

If an employer files within 30 days of the due date, a penalty of approximately $60 per form may apply. This amount can increase to $130 per form if filed more than 30 days late but by August 1st, and further to $330 per form if filed after August 1st or not at all. Intentional disregard of filing requirements can result in significantly higher penalties, potentially reaching $660 per form with no maximum limit. These penalties are assessed per W-2, meaning the total cost can quickly accumulate for employers with many employees.

What Employees Should Do if a W2 is Missing

If an employee does not receive their W-2 by the January 31st deadline, the first step is to contact the employer directly. The employee should request a copy of the W-2 and confirm that the employer has their correct mailing address. Sometimes, a W-2 might simply be delayed in the mail or sent to an outdated address.

If the employer is unresponsive or unable to provide the W-2 by the end of February, the employee should contact the IRS for assistance. The IRS will request information such as the employee’s name, address, Social Security number, and the employer’s details. The IRS will then contact the employer and provide the employee with Form 4852, Substitute for Form W-2, Wage and Tax Statement. This form allows the employee to estimate their wages and withheld taxes using information from their final pay stub, enabling them to file their tax return on time.