When is the Deadline to Send out W2s?
This year, Employers are required to send out their 2020 W2 forms and other related wage statements by February 1st, 2021. This is the same date employees can expect to get their Form W-2s by in order to file their tax returns.
The law states that employers are required to furnish copies of all W2 forms and W-3s by January 31st, 2021. However, due to the fact January 31st falls on a Sunday in 2021, this deadline has been shifted to the following business day.
In addition to these forms, employers are also required to provide Form 1099-MISC and Form 1099-NEC forms by the same date. There are some exceptions, but these apply to a minority of employers.
Employees can begin filing their tax returns as soon as they get their W-2s.
Prevent W2 Fraud With Timely Filings
Employers should not just aim to make timely filings due to the law, filing wage statements on time and without any errors and omissions is beneficial because it prevents fraud. Not only do employers avoid heavy penalties for failing to file on time, but the IRS is also able to use the time to verify the numbers given and to detect fraud.
The easiest way for employers to file any returns is the E-file system on the IRS platform. It is the most convenient method of filing returns. Employers filing 250 returns, or more, are required to file electronically through the E-file platform by law.
Avoid Problems Through Diligent Preparations
Errors and other problems with required filings tend to occur when the process is rushed. Employers can prevent future problems through diligently preparing all the required information well in advance of the deadline.
A good place to start is by verifying and updating employee information, such as names, addresses, TIN numbers, and Social Security numbers.
Employers also need to ensure that the account information the Social Security Administration has on them is valid and correct. Employers also need to consider ordering paper Form W-2s, if required, as these can take time to arrive.
If the deadline is not met, employers will not receive an automatic extension. The IRS will only grant filing extensions for extremely specific reasons. Employers who feel like they qualify for an official extension need to read the instructions given through Form 8809.
Fortunately, many employees can now get their W2 online, and they can simply import it into their tax returns.