IRS Form W-2 Changes for the 2023 Tax Year
- What are the changes to Form W-2 for 2023?
- When is the Form W-2 deadline for 2023?
- Advantages of E-filing Form W-2 with TaxBandits
New Form W-2 Changes for the 2023 Tax Year
From the 2023 tax year, the IRS has increased the Form W-2 penalty rates due to adjustments for inflation and increased the social security wages base form $147,000 to $160,200.
In this article, we cover the following topics:
1. What are the changes to Form W-2 for 2023?
The IRS has made several updates to the Form W-2 for the 2023 tax year.
Employers should be aware of the
following updates.
Updates to employee section
The SSA has increased the social security wages limit from $147,000 to $160,200 for the tax year 2023. Therefore, the total of the Box 3 (Social security wages) and Box 7 (social security Tips) should not exceed the $160,200.
Box 4:
Since the social security wages limit has been increased to $160,200, the Social security tax withheld should not exceed $9,932.40 ($160,200 × 6.2%).
Penalty Changes
The IRS has increased penalties for failure to file Forms W-2 to account for inflation. See the table below for the updated penalty amounts.
| Number of days late | For 2021 Tax Year | For 2022 Tax Year | For 2023 Tax Year |
|---|---|---|---|
|
Filed within 30 days |
$50 per form to a maximum of $556,500 per year ($194,500 for small businesses). |
$50 per form to a maximum penalty of $588,500 per year ($206,000 for small businesses). |
$60 per form to a maximum penalty of $630,500 per year ($220,500 for small businesses). |
|
Filed after 30 days and |
$110 per form to a maximum of $1,669,500 per year ($556,500 for small businesses). |
$110 per form to a maximum penalty of $1,766,000 per year ($588,500 for small businesses). |
$120 per form to a maximum penalty of $1,891,500 per year ($630,500 for small businesses). |
|
Filed after August 1 |
$270 per form to a maximum of $3,339,000 per year (1,113,000 for small businesses) |
$290 per form to a maximum penalty of $3,532,500 per year ($1,177,500 for small businesses). |
$310 per form to a maximum penalty of $3,783,000 per year ($1,261,000 for small businesses). |
|
International Disregards |
$580/form to no maximum limits |
$580/form to no maximum limits |
$630/form to no maximum limits |
Learn more about IRS penalties by visiting https://www.taxbandits.com/w2-forms/form-w2-penalty/
2. When is the Form W-2 deadline for 2023?
The Form W-2 is required to be filed with the IRS and distributed to employees no later than January 31, 2024. If the W-2 deadline for filing falls on a weekend or federal holiday, the next business day becomes the deadline.
3. Advantages of E-filing Form W-2 with TaxBandits
Taxbandits is an IRS-authorized e-file provider that supports the e-filing of a variety of business tax forms, this includes Forms W-2, the 94x Series, the 1099 Forms, ACA forms, and more.
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 easily e-file with the SSA, state, and distribute employee copies either by mail or through a secure online portal.
Our built-in audit feature checks your forms using the IRS/SSA Business Rules to catch common errors. This helps ensure that you transmit accurate forms to the SSA and avoid filing corrections at a later time.
Additionally, you can take advantage of these additional filing features:
- Bulk Upload Features
- Access to Form Copies (PDF)
- Excellent Live Customer Support
- Supports W-2 Form Corrections
- Flexible Payment Options
- Multi-User Access
Learn more about TaxBandits’ time-saving features.
Get started with TaxBandits today and e-file W2 for as little as $0.80/Form
