W-2 is one of the IRS forms that businesses must prepare at the start of each year. Along with 1099, Form W-2 reports salary, wage, or any other compensation as part of the employment relationship between. On the other hand, 1099 reports payment made to contractors and non-employees.
Since your employees need their W-2 completed before the tax season starts so they can prepare their tax returns properly, not doing it so will bring you penalties. Not only failing to file but a few other things can also bring penalties to the employers.
These include giving the wrong form to the employee. For example, giving W-2 to someone who should have received a 1099 and vice versa. In addition to this, completing employee’s W-2 Forms but not providing it to them is punishable.
The due date to file W-2 is the last day of January every year. So make sure that you complete all employee’s W-2 Forms and giving it to them. After you’ve fulfilled the W-2 requirements on your end, as an employer, you must submit W-2 along with Form W-3 to the SSA. Forwarding these forms are also due on the last day of January.
In conclusion, W-2 Form is due on January 31st, 2020 for both employees and employers. If the due date falls on a weekend or holiday, the reports are going to be due the next working day.
We recommend giving W-2 Forms to your employees in early January so they will have a chance to look for any potential errors and correct them. This is vital for both the employee and you as the IRS is likely to be on the side of the employee in case something’s inaccurate since it’s your responsibility to complete the form correctly.
Keep in mind that if you need to file 250 or more Form W-2, you must file electronically. You can read our Form W-2 instructions post to understand how the form is prepared.