New Form W-2 Changes for the 2025 Tax Year
Starting from the 2025 tax year, the IRS has increased the Form W-2 penalty rates due to adjustments for inflation and increased the social security wages base from $168,600 to $176,100.
Table of Contents:
What are the changes to Form W-2 for 2025?
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Change 1: Updates to Social Security wage limit
The SSA has increased the social security wage limit from $168,600 to $176,100 for the tax year 2025. Therefore, you must ensure the following when completing W-2.
- Box 4, the Social Security tax withheld, should not exceed $10,918.20 ($176,100 × 6.2%).
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The Social Security and Medicare coverage threshold for household wages has increased from
$2,700 to $2,800.
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Change 2: Penalty Changes
The IRS has increased penalties for failing to file Forms W-2 to account for inflation. The updated penalty amounts are in the table below.
| Number of days late | Penalty for 2025 Tax Year | Penalty for 2024 Tax Year |
|---|---|---|
| Filed within 30 days from the deadline |
The Minimum Penalty is $60 per form The Maximum Penalty is
|
The Minimum Penalty is $60 per form The Maximum Penalty is
|
| Filed after 30 days and within August 1st |
The Minimum Penalty is $130 per form The Maximum Penalty is
|
The Minimum Penalty is $130 per form The Maximum Penalty is
|
| Filed after August 1 |
The Minimum Penalty is $330 per form The Maximum Penalty is
|
The Minimum Penalty is $330 per form The Maximum Penalty is
|
| International Disregards | $680/form to no maximum limits | $660/form to no maximum limits |
Click here to learn more about W-2 Penalties.
When is the Form W-2 deadline for 2025 tax year?
The Form W-2 is required to be filed with the IRS/SSA and distributed to employees no later than February 2, 2026.
Click here to learn more about W-2 Deadline.
Advantages of E-filing Form W-2 with TaxBandits
E-filing your Form W-2 with TaxBandits offers numerous advantages tailored to simplify and enhance your filing experience. Our e-filing process is specifically designed to take the guesswork out of filing forms for your business or on behalf of your clients.
With TaxBandits, you can file your Form W-2 with SSA and State and distribute employee copies to your recipients through either mail or a secure online portal.
TaxBandits allows you to file multiple returns by importing your data through CSV templates.
Additionally, you can take advantage of these additional filing features:
- Support for W-2 correction
- Internal audit check
- Excellent live customer support
- Multiple user access for CPA and tax pros
- Online client portal to communicate with your clients
- Flexible pricing
Get started with TaxBandits today and e-file W2 as the lowest price in the industry.
How to File Form W2 for 2025?
Filing your Form W2 with TaxBandits is an easy and simplified process; follow the simple steps below:
- Step 1: Create an account and choose W-2 Form
- Step 2: Enter the Form W2 Information
- Step 3: Review the Form summary
- Step 4: Transmit it to the SSA & State
- Step 5: Distribute the recipient copies
If you have opted-in to postal mailing or online access services, TaxBandits will take care of the distribution of your recipient copies on your behalf.
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