Federal law requires employers to report wages, salaries, and compensation paid to employees as part of the employment relationship on Form W-2. Upon receiving their W-2, employees use it to file their tax returns correctly since they sum up the majority of their income.
If employees do not receive their W-2 by the end of January every year, the employers will be subjected to penalties by the Internal Revenue Service. For 2020, failing to file W-2 is $50 per W-2 if the employer files it within 30 days of the due date. Although it is a small amount, it can add up depending on how many employees the establishment has. The maximum penalty in 2020 is $536,000 per year and $187,500 for small businesses.
Your employer hasn’t issued a W-2 yet?
Before you contact the IRS, make sure you check your e-mail as more and more companies are now sending tax statements to the employees electronically. If your W-2 is nowhere to be heard, you get in touch with your company. You can call the human resources or payroll department to know when you’re going to receive your W-2.
The middle of February arrives and your employer still hasn’t issued your W-2? Your only option is to know contact the IRS. Call the IRS and inform the agency and they will contact the workplace. In case you never receive your W-2, you might want to learn how to file your taxes using Form 4852 which is a Substitute for Form W-2.
This document will ask you to estimate your wages and taxes withheld last year. Use your final pay stub to complete the form accurately. This will be enough for filing your taxes, however, if you want to wait for your official W-2, you can request a tax extension that will allow you to file your taxes till October 15.
In conclusion, you as an employee can’t do anything to make your W-2 reach you sooner since it’s all on your employer.