That time of year has arrived: It’s time to file W2s for all employees. But what is a W2 and what are the filing requirements?
Every year, employees anxiously await their year-end tax form from employers to participate in the annual tradition of filing taxes. As soon as the office opens after the new year, managers and owners of businesses will be fielding the ever-important question on top of everyone’s mind: “When will I get my W2?”
Per the Internal Revenue Service, W2s are required to issued to employees by January 31. If employers choose to mail W2s in lieu of an electronic delivery, those mailings must be properly addressed and postmarked on or before January 31.
Employers using a payroll service like QuickBooks or ADP will have typically have access to these forms for distribution by mid-January.
Who gets a W2 and how do they receive it?
It’s important to file W2s for anyone who has been paid wages as an employee. An employee is someone who works for a company and receives a paycheck that has federal and state tax withheld on their behalf. Whether they worked one hour or one year, if a paycheck was issued and any kind of tax was withheld, a W2 is required to be issued to the employee by January 31.
With the rise of technology and support from payroll processors, most employees can access these forms electronically via a portal provided by the processor. However, employees, and employers, can opt for W2s to be sent via mail. Regardless of the option, these forms must be provided timely, and fines can result from forms issued late.
Note, it’s very important that employers obtain either an electronic or paper document of consent from employees to receive forms electronically. Additionally, disclosure requirements must be included that allow the employee to be kept informed to changes to access to said documentation, withdraw consent to receive documentation electronically, and be notified of all requirements necessary to access the information.
It’s best practice to keep updated mailing information on employees – especially if an employee leaves the company. This ensures that W2s can be delivered efficiently to the intended recipient.
When W2s come back as undelivered, it’s important to take documentation showing attempts to deliver and keep those records.
If you have questions about how to file W2s or need assistance making sure they are filed timely, contact us today for a consultation. We can work with the system you have in place to make sure everything gets where it needs to be.