Form W2 Late Filing Penalty for 2022

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Form W-2 - Late Filing Penalty

Updated on January 27, 2023 - 10:30am by, TaxBandits

IRS Form W-2 is an annual payroll report that depicts the taxes withheld from the employee's paycheck for the particular tax year. The employer uses it to file both federal and state taxes.

As the deadline for Form W-2 draws to a close, all the employers need to file employees' W-2s along with W-3, the transmittal form, to the Security Security Administration (SSA) before the deadline.

Here, we cover the following topics:

1. When is the deadline for W2 Forms?

January 31, 2023 is the deadline to file Form W-2 with the SSA for the tax year 2022.

Note: If the deadline falls on a weekend or federal holiday, the next weekday is the deadline.

2. Why are penalties charged?

There are a number of reasons an employer can be charged with penalties.

Late Filing
Filing with incorrect information
  • Missing TIN
  • Missing necessary information
Failing to give the required information
  • Incorrect TIN
  • Incorrect information
Wrong filing method
  • Filing by paper when need to e-file
  • Filing forms that are not machine-readable
Failing to provide employee copies
Fraudulent filing

3. What are the late filing penalties for W-2 Forms 2022?

The late filing penalties for Form W2 are determined by the IRS based on the delay period and size of the business. The penalties have been increased for the Form W-2 for the 2022 tax year. Here is the overall breakdown of penalty for the 2022 tax year:

Time limit Minimum Maximum
Filed within 30 days $50 /form $588,500 per year ($206,000 for small businesses)
After 30 days and before August 1 $110 /form $1,766,000 per year ($588,500 for small businesses)
After August 1 $290 /form $3,532,500 per year (1,177,500 for small businesses)
For intentional disregard of failing to file and incorrect payee statements - $580 per statement
For fraudulent filing - $5000 or more

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4. What are the penalties for not filing with the state?

There are states that require you to file Form W-2 with the State. Failing to file with the state may result in penalties. These State penalties are to be paid in addition to the Federal penalties.

The penalty rates differ for each state and it depends upon when you actually file your return.

Check penalties of the respective states from State Filing Requirements.

5. How to avoid Form W-2 penalties?

Here are simple ways to avoid penalties.

  • Do your tax filing on time
  • Provide all necessary information
  • Be aware of the right filing method
  • Choose the right Form
  • Fill the entries correctly
  • Always double-check the TIN
  • Review the form before Pay & Transmit
  • Send employee copies on time.

Why pay the penalty when you can avoid it? FILE NOW!

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