Year-End W2 Forms Guidance: Preparation and Tips

It’s the time of year that all employees and employers look forward to most - the end of the year and the beginning of tax preparation season. The first deadline to work toward is the annual W2 and W3 forms.

Who Must File

You must file W2's if you have one or more employees to whom you made payments (including non-cash payments) during 2023.  

You do not have to file a W2 if you did not withhold any income tax, social security tax, or Medicare tax and you paid the employee less than $600 (i.e. election workers).

Due Dates

The deadline to file W-2s using Business Services Online or to submit paper Form W-2 is January 31, 2024. This pertains to both paper and electronically submitted returns.

The deadline to distribute the Form W-2 to employee(s) is January 31, 2024.

Requirements

You are required to file electronically if you are an employer with 10 or more employees.

Penalties

You can be assessed a penalty if:

• Fail to file on time
• Fail to include all required information
• Include incorrect information on a return
• File on paper when you are required to e-file Report an incorrect SSN
• Fail to report a corrected SSN
• Fail to file paper forms that are machine-readable

Penalties can range in price from $60 - $630:

• $60 per W-2 (if you file within 30 days of the due date) - maximum - $220,500 for a small business
• $120 per form (if you file 30 days after the due date but by August 1)- maximum - $630,500 for a small business
• $310 per form if you file after August 1- maximum - $1,261,00 for a small business
• $630 per form for intentionally neglecting to file – maximum – no limitation

The Baldwin CPAs Elevate Team is geared up and ready to process year-end payroll tax returns and W2’s for your organization. We are here to assist you with any questions you have in preparing your W2’s / W3.

This article was written by Debbie Woodcock. Debbie is a Senior Payroll Specialist with Baldwin CPAs. For more information on the support Baldwin CPAs can provide you, contact debbie.woodcock@baldwincpas.com.