When do employers have to provide W-2?

Understanding the deadlines for employers to provide W-2 forms is crucial for both employers and employees. The W-2 form, officially known as the Wage and Tax Statement, is a document that employers must issue to their employees and to the IRS. It summarizes the amount of wages paid to the employee, the taxes withheld, and other relevant information. Here’s a detailed look at the deadlines and when employers are required to provide W-2 forms.

General Deadlines

The general deadline for employers to provide W-2 forms to their employees is January 31st of the year following the tax year in question. For example, if the tax year is 2022, employers must distribute W-2 forms to employees by January 31, 2023. This applies to all employers, regardless of the size of their business.

Deadlines for Sending W-2s to the IRS

In addition to providing W-2 forms to employees, employers must also file copies of these forms with the IRS. The deadline for filing W-2s with the IRS is March 31st. However, if employers file their W-2s electronically, they have until March 31st to do so. For paper filing, the deadline is February 28th, but if the 28th falls on a weekend or a holiday, the deadline is extended to the next business day.

Exceptions to the Deadlines

While the general deadlines apply to most employers, there are some exceptions. For instance, employers who file fewer than 250 W-2 forms for the previous calendar year may be eligible for an extension. These employers can request an extension by filing Form 8809, Application for Extension of Time to File Information Returns, with the IRS.

Consequences of Missing the Deadlines

Missing the deadlines for providing W-2 forms can result in penalties. The penalties vary depending on the reason for the delay and the number of forms affected. Employers who fail to file on time may face penalties of up to $50 per form, with a maximum penalty of $265,000 per year.

Summary

In summary, employers must provide W-2 forms to their employees by January 31st of the year following the tax year. They must also file copies of these forms with the IRS by March 31st (or February 28th for paper filing). Understanding these deadlines and adhering to them is essential for compliance with tax regulations and to avoid potential penalties.