Unsure if you need to file a W-2 form for your employees? This read is for you.
It’s no secret that the tax season comes with its own share of paperwork and stress.
And if you’re new to the business, and aren’t sure how the filing ecosystem works, this is a good start.
For starters, Form W-2 is one of the most essential documents you’ll need to file with the IRS.
Filing a wrong form, even by mistake, can come with its own consequences (from the IRS).
So, before you begin filing your forms, you must know which forms are appropriate for your purpose.
And if you’re wondering whether you’d need to file a W-2 and aren’t sure how to go about it, this is the right place to get started.
In this blog, we are going to discuss all things W-2 in detail.
So, let’s get started.
Form W-2: An Overview
Form W-2 is an IRS form known as the Wage and Tax Statement. This form is used for reporting an employee’s annual wages and the amount of taxes withheld from their paycheck.
Employers must send a copy of this form to the employee and the Social Security Administration (SSA).
It is important to note that this form is not just for reporting wages – it is also used to report tips, commissions, and other forms of employee compensation paid by the employer.
Form W-2: Do You Need To File It?
- Every employer who is engaged in a trade or business and pays wages to their employees must file Form W-2.
- This includes corporations, partnerships, sole proprietorships, nonprofits, and government agencies.
- You’d need to file a W-2 form for each of your employees who’s earned $600 or more during the year.
- You will also need to file Form W-2 if you withheld any federal income tax from your employees’ paychecks, regardless of how much they earned.
- Note that the payment mode (cash, check, direct deposit, etc.) is irrelevant when determining whether or not an employer must file Form W-2.
Did You Know: Form 1099-NEC is actually issued to contractors, not employees. But if you’re issuing 1099-NEC to your employees, you’re misrepresenting your workers, which could lead to legal trouble, heavy penalties, and reputational losses.
Form W-2: Here’s How You File It Online
The traditional approach would be to obtain a copy from the IRS and fill it out, and file it with the Social Security Administration (SSA). The SSA will then use the information on Form W-2 to generate social security benefits for your employees.
However, things are slightly different when you eFile W-2 online. In this case, you will need to use an IRS-approved eFile provider, and Tax1099 is one of the most trusted and easy-to-use eFile platforms out there.
Here’s how you can eFile your Form W-2 in 3 simple steps with Tax1099.
Step 1: Create an account or log in
The first step is to create an account and log in. You can do this by visiting our website and clicking on the “Sign Up” button.
Step 2: Validate your account and add recipients
Once you’re logged in, you’ll need to validate your account. You can do this by providing your Taxpayer Identification Number (TIN) and selecting a validation method. After your account is validated, you can start adding recipients.
Step 3: Fill out the forms and submit
Once you’ve added your recipients, you can select the forms you need to file. You’ll need to fill out the required information for each form. You can choose from any of our integrations to automate this process. Tax1099 will automatically fill out the forms for you. Once you’re through reviewing the forms, you can submit them.
And you’re done.
It’s just that easy.
We will take care of the rest and make sure your forms are filed correctly and on time.
When Is Form W-2 Due For eFiling For The 2022-23 Tax Year?
Employers must send copies of Form W-2 to employees no later than January 31, 2023.
If you are filing for the 2022 tax year, you will need to send forms to your employees no later than January 31, 2023.
What Happens If I Don’t File Form W-2?
Any employer who fails to file the required Form W-2 will be subject to a penalty.
The penalty is $50 per W-2 that is not filed within 30 days from the due date.
If the form is not filed within 30 days and before August 1st, the penalty will increase to $110 per form.
After that, the penalty would be $270 per form.
| IRS Form | Late by | Penalty |
| Form W-2 | 30 days after the due date | $50 per form |
| Form W-2 | Beyond 30 days but before August 1st | $110 per form |
| Form W-2 | After August 1st | $270 per form |
How Tax1099 Can Help You With Your W-2 Filing?
eFile W-2s in minutes with Tax1099, an IRS-authorized eFile provider, trusted by 150,000+ businesses.
Bulk W-2 Filing: There’s no doubt that if you have multiple W-2 forms to file, the process can be time-consuming. With Tax1099, you can file all your forms at once within minutes. All you need to do is import your data, review it for accuracy, and then eFile. That’s it! Your forms will be filed electronically and you will receive a confirmation once the process is completed.
API for W-2 Filing: We understand that some businesses do not have the time to prepare and file the forms manually. That’s why Tax1099 offers API solutions for businesses that need to automate these processes.
Our platform also has various security and utility features in place, such as Two-Factor Authentication, Single Sign-On, Notice Management, Rights Management, Workflow Management, and more.
These features enable you to protect your tax-sensitized data, restrict access to sensitive data, and enable you to manage the processes better.
With Tax1099, you can be sure that your filing is done accurately and on time. Here are some of the top Tax1099 features that will make your life easier:
TIN Verification: Do you know? Incorrect TIN reports can lead to IRS notices and fines. With our quick and real-time TIN verification solutions, you can verify payee TINs in seconds. This accelerates reporting accuracy.
Secure Data Transmission: All your forms are transmitted over a secure 256-bit AES encryption, so you can be assured of the security of your data.
Address Validation: With our Address Validation feature, you can validate and format the addresses of your payees per the USPS records.
Tax1099 makes it all easier for you.
So, why wait?
Get started with your W-2 filings online today.