The IRS mandates e-filing when you file 10 or more tax returns for the 2023 tax year. E-File Now

Form W-2 - Late Filing Penalty

Updated on January 27, 2024 - 10:30am by, TaxBandits

IRS Form W-2 is an annual payroll form that reports 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 employers need to file employees' W-2s along with W-3, the transmittal form, to the Security Security Administration (SSA) before the deadline.

1. When is the deadline for W2 Forms?

January 31, 2024 is the deadline to file Form W-2 with the SSA for the tax year 2023. Employers must also distribute a copy of Form W-2 to each employee before January 31, 2024.

TaxBandits for Every Business

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 2023?

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 2023 tax year. Here is the overall breakdown of penalty for the 2023 tax year:

Time limit Minimum Maximum
Filed within 30 days $60 /form $630,500 per year ($220,500 for small businesses)
After 30 days and before August 1 $120 /form $1,891,500 per year ($630,500 for small businesses)
After August 1 $310 /form $3,783,000 per year ($1,261,000 for small businesses)
For intentional disregard of failing to file and incorrect payee statements - $630 per statement
For fraudulent filing - $5000 or more

Your business is classified as a small business if its average annual gross receipts for the three most recent tax years are $5 million or less.

TaxBandits for Every Business

E-file Form W-2 with TaxBandits before the deadline to stay away from the W-2 penalties. Get Started Now!

E-filing starting at $0.80/form. File now and use our postal mailing options to send the W-2 copies to your employees.

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

Some states require you to file Form W-2. Failing to file with the State may result in IRS penalties. These state penalties are to be paid in addition to the Federal penalties. The penalty rates differ for each state, depending on when you file your return.

Check out the latest penalties and state filing requirements of the respective states.

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.
TaxBandits for Every Business

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

Get Started Now with TaxBandits, an authorized efile provider that supports the filing of Form W-2.

With TaxBandits,

TaxBandits for Every Business

Success Starts with TaxBandits

The Smart Business Owners Choice