IRS Form W2 For 2020 Tax Year
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Form W-2: Instructions and Deadline
Updated on January 20, 2021 - 10:30am by, TaxBandits
Employers running businesses in the US must file W-2, Wage, and Tax Statements, with the SSA, and a form copy must be sent to the employees every year. The Form W2 is used to report the wages paid to employees and the taxes withheld from their paychecks. This must be issued at the end of the year. All full-time employees are subject to W-2 withholding.
Now, you may have many questions regarding W-2, like how to file W-2, when are the deadlines, and so on. In this article, we will address all the information you should know about W-2 for 2020.
1. What is Form W-2?
Form W2 is an annual tax return that must be submitted to the SSA by the employers. This form reports the wages paid and the Federal and State taxes withheld from the employees’ paycheck. The SSA will use the W2 information to determine the Social Security benefits for each employee.
For each employee, you must file this form with the SSA. A copy of the form must also be
furnished to the employee.
Note: Don’t File a W2 for independent contractors/vendors, instead, 1099 forms must be filed.
2. What is the deadline to file W2 Forms?
The SSA requires employers to submit their W2s on or before January 31. The W2 form copies should be sent to employees before January 31. If you fail to file W-2 with the SSA or furnish employee copies, you will be subject to penalties.
Form W2 deadlines - 2020
|Form Type||E-filing||Paper filing||Employee copy deadline|
|Form W2||January 31, 2021||January 31, 2021||January 31, 2021|
Note: If the deadline falls on a weekend or federal holiday, the next business day is the deadline.
3. What are the W-2 penalties?
The SSA will penalize you if you fail to file W-2s or distribute employee copies, you will be subject to penalties. The penalties related to W-2 are listed below:
|Days delayed for filing
Form W2 /furnishing employee copies
|Large Businesses with Gross Receipts of $5 Million or more||Small Businesses with Gross Receipts $5 Million or less|
|Less than 30 days late||$50 per return||$50 per return|
|31 days late – August 1||$110 per return||$110 per return|
|After August 1 or Not at All||$280 per return||$280 per return|
|Intentional Disregard||$560 per return||$560 per return|
4. What are the states that mandate the filing of W2?
For the tax year 2020, 40 states have mandated the filing of W-2 forms. Each state follows its own set of rules for the filing of W2. Based on your state requirements, you may have to file W-2s and other reconciliation forms with the state. To learn more about your state W-2 filing requirement, click here.
5. What are the W-2 Filing methods?
The SSA provides two different methods for filing W-2. One is electronic filing, and the other method is paper filing. If you decide to paper file, you should attach W-3 with your Form W2 and send it to the SSA. When filing electronically, W-3 is not required, and the SSA processes your forms at a faster rate. Comparing these two methods, e-filing is more convenient and offers many advantages. E-filing is:
- Easy and straightforward
- Accurate and error-free
- Allows for tracking of the return status
6. E-file W-2 through TaxBandits
TaxBandits is a leading IRS-authorized e-file provider. We support the e-filing of W-2 with both the SSA and states. We have updated our application as per the most recent updates from the IRS.
Choose TaxBandits as your e-filing partner and experience the following benefits:
- Cost-effective e-filing
- Support for both manual filing and bulk filings
- Inbuilt error checks
- Provides return status notification via email
- TIN matching
- Support of state filing
- Prepaid credits for hassle-free filing
- Allows employees to view and download their form copies via TaxBandits’ secure Online Access Portal
- API integration to extend your software
- Ability to view and download submitted forms at any time for record-keeping
- Data Security and Multi-Factor Authentication measures
- Perfect e-filing solution for businesses of all sizes
Get started with TaxBandits today to e-file your Form W2!
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