Form W-2 is a payroll or employment tax return form that is filed electronically with the SSA (Social Security Administration) by employers for their employees each year. In addition to filing with the SSA, employers must send copies of Form W-2 to their employees to report salary and other compensations offered throughout the year.
Employees will need to receive a W-2 Form if you provided them with income that had social security, income, or Medicare tax withheld. They will use the information on their W-2 to complete their personal income tax returns. A W-3 Form must be submitted with your W-2 forms. Form W-3 is a transmittal form that reports the total earnings, social security wages, Medicare wages, and tax withholdings for your employees during the tax period.
Depending on your state requirements, you may need to file Form W-2 and other reconciliation forms with your applicable state. You can e-file these forms easily from your TaxBandits account.Learn More
Failure to file Form W-2 by the deadline results in a $30 penalty per W-2. Filing 30 days after the due date raises the penalty to $60 per form, with a max fine of $500, or $200 for small business owners.Learn More
The Form W-2 extension for filing with the SSA is no longer automatic as of 2016. The only extension possible is for 30 days. Apply for this extension by paper filing Form 8809, the Application for Extension of Time to File Information Returns. When filing Form 8809 you must provide a detailed explanation for needing an extension and sign under penalties of perjury.
To extend the amount of time you have to provide Form W-2 copies to your employees, send a letter to the IRS requesting an extension by the January 31 deadline. The letter must include your name, address, EIN, reason for needing an extension, and either your signature or authorized agent’s signature. This extension is not automatic and only 15 days are allowed unless the IRS accepts justification for 30 days.