IRS Form W-2 Changes for the 2024 Tax Year Charles Hardy | Last Updated: March 10, 2025 E-file W-2 Now Exciting news: Free payroll for small businesses is here! Register your interest today Home Form W2 Form W-2 Changes New Form W-2 Changes for the 2024 Tax Year Starting from the 2024 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 $160,200 to $168,600. Table of Contents: What are the changes to Form W-2 for 2024? When is the Form W-2 deadline for 2024 tax year? Advantages of E-filing Form W-2 with TaxBandits How to File Form W2 for 2024? What are the changes to Form W-2 for 2024? Change 1: IRS Adds BOX 12 Code II for Medicaid Waiver Payments For the 2024 Tax Year, the SSA Adds Box 12 Code II for Income from the Exclusion of Medicaid Waiver Payments (IEMWP-II). Change 2: Updates to Social Security wage limit The SSA has increased the social security wage limit from $160,200 to $168,600 for the tax year 2024. Therefore, you must ensure the following when completing W-2. The total of Box 3 For the 2024 Tax Year, the SSA Adds Box 12 Code II for Income from the Exclusion of Medicaid Waiver Payments (IEMWP-II). Box 4, the Social Security tax withheld, should not exceed $10,453.20 ($168,600 × 6.2%). Change 3: 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 2024 Tax Year Penalty for 2023 Tax Year Filed within 30 days from the deadline The Minimum Penalty is $60 per form The Maximum Penalty is Small Business - $232,500 Large Business - $664,500 The Minimum Penalty is $60 per form The Maximum Penalty is Small Business - $220,500 Large Business - $630,500 Filed after 30 days and within August 1st The Minimum Penalty is $130 per form The Maximum Penalty is Small Business - 664,500 Large Business - $1,993,500 The Minimum Penalty is $120 per form The Maximum Penalty is Small Business - $630,500 Large Business - $1,891,500 Filed after August 1 The Minimum Penalty is $330 per form The Maximum Penalty is Small Business - $1,329,000 Large Business - $3,987,000 The Minimum Penalty is $310 per form The Maximum Penalty is Small Business - $1,261,000 Large Business - $3,783,000 International Disregards $660/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 2024 tax year? The Form W-2 is required to be filed with the IRS/SSA and distributed to employees no later than January 31, 2025. If the W-2 deadline for filing falls on a weekend or federal holiday, the next business day becomes the 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. E-File Now How to File Form W2 for 2024? 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. Share this article Form W-2 Topics Form W2 Changes for 2024 Form W-2 Form W-2 Instructions Form W-2 Due Date Form W-2 Penalty Form W-2 Mailing Address Form W2 vs W4 Form W2 vs 1099 Form W2 vs W9 Form W2 Box Codes Related Blog for Form W-2 Form 1099 and W-2 E-filing are Now Available for the 2024 Tax Year with TaxBandits A Guide to Understanding the Box 12 Codes on Form W-2 Understanding Form W-2: What is Box W-2 D and its Purpose? FAQs for Form W-2 How to file W-2 for a previous year? How do I access copies of W2? How to File Form W-2 with TaxBandits?