W2 Form 2023
Although W2 forms 2023 are not released yet, the deadlines for 2022 forms are January 31, 2023! Here is everything you may want to know about the W2 forms.
If you are running a business in the United States, then the W2 form is one of the forms that you need to fill out and send to your employees every year! The W2 form, also known as the Wage and Tax Statement, is used to report the wages paid to the employees along with the taxes withheld from their paychecks.
This form must be filled out at the end of the year and sent to all your employees. Missing the deadline will result in penalties and interest. So, it is important to stick to the recommended schedule.
If you withheld any income tax, Medicare tax, or social security tax from your employees during the year and you paid more than $600 in wages to a single team member, then you need to file a W2 form.
Things You Need To Know Before Filling Out W2 Forms
In the W4 form, you are obliged to report different details, such as withheld taxes, tips, bonuses, wages, EIN, and SSN. You will be submitting your form to the SSA but not the IRS and need to attach form W3, which is known as the summary form. On the other hand, if you are going to submit your W2 form electronically, then you do not have to submit form W3.
Another important thing to note is that the deadline to submit your W2 form to SSA is January 31 of the following year. Keep in mind that if the deadline falls on a federal holiday or weekend, the deadline will be the next business day.
Form W2 has six copies, which you have to send or file to different institutions or taxpayers. You will have to send Copy A to the Social Security Administration in this regard. You will be sending Copy 1 to City, State, or Locality.
On the other hand, you need to file Copy B together with the employee’s Federal Tax Return. Copy C will be kept in the employee’s records. In addition, you will have to file Copy 2 along with the employee’s State and Local Income Tax Return. The last copy, i.e., Copy D, is also for the employer’s records.
Try To File The Form W2 On Time To Avoid Penalties
Of course, you will be charged with certain penalties if you fail to file your W2 forms on time. These penalties vary depending on how late you are going to file your forms. The penalties for large and small businesses are the same.
If you fail to file your form before the deadline and file it less than 30 days after the deadline, you will be charged a $50 penalty per return. This will increase to $110 if you file your forms until August 1. On the other hand, if you do not file them at all or file after August 1, you will be charged a $290 penalty per return.
If the SSA decides that your delay in filing your form will be considered an intentional disregard, then you will be charged with a $580 penalty per return.
Incorrect form filing will also be evaluated as a failure to file the form on time. Thus, you may want to use the correction form, which is the W2c form, to avoid any penalties. Some common errors on W2 forms include the wrong tax year, SSN, and EIN.
Also, most employers make mistakes when giving the right amount of taxes withheld, tips, or wages. But the good thing is the correction is pretty simple, and all you need to do is inform SSA with the file Form W2c.