What are the Late Filing Penalties Associated with Form W-2?
If you fail to file a correct W-2 Form by the due date and cannot show reasonable cause, you may be subject to a penalty as provided under section 6721. The penalty applies if you:
Fail to file timely,
Fail to include all information required to be shown on W-2 Form,
Include incorrect information on W-2 Form,
File on paper forms when you are required to e-file,
Report an incorrect TIN,
Fail to report a TIN, or
Fail to file paper Forms W-2 that are machine readable.
The amount of the penalty is based on when you file the correct W-2 Form. The penalty is:
$30 per W-2 Form if you correctly file within 30 days (by March 30 if the due date is February 28); the maximum penalty is $250,000 per year ($75,000 for small businesses, defined on page 11).
$60 per W-2 Form if you correctly file after 30 days beyond the due date but by August 1; the maximum penalty is $500,000 per year ($200,000 for small businesses).
$100 per W-2 Form if you file after August 1, or you do not file required Forms W-2; the maximum penalty is $1,500,000 per year ($500,000 for small businesses).
Last modified 26 Jul 2017 17:07 EST