Filing all the tax forms for your business can be overwhelming. With tax season upon us, it’s understandable if you’re thinking you may just file Form W-2 late.

Before you give up and miss your deadline, it’s important to know the risks. There are some expensive penalties associated with late filing Form W-2. Employers also need to know that there are safe and affordable options for meeting the Form W-2 deadline on time. Here’s everything you need to know about Form W-2 penalties and how to avoid them. 

What is Form W-2

Form W-2 is the employer’s wage tax form. It allows businesses to report how much they paid their employees and how much they withheld from employee paychecks for income tax, social security, and medicare.

This form needs to be filed with the SSA. Employers are also required to send each of their employees a copy by the deadline. For everything you need to know about Form W-2, click here.

When is Form W-2 Due

Usually, the Form W-2 deadline is January 31, but when that date falls on a weekend or holiday, it gets pushed to the next business day. This year, Form W-2 is due on February 1, 2021.

Employers are required to file Form W-2 and send out their employee copies by February 1, 2021. Click here to find out how to file Form W-2 for your small business. 

Form W-2 Penalties

So you miss the Form W-2 deadline? Then what happens? Failing to file Form W-2 can cause your business to rack up fines and penalties. Penalties get more expensive based on how far past the deadline your return is filed.

If you file Form W-2 within the first 30 days after the deadline, you can be charged up to $50 per late form. After 30 days, Form W-2 penalties go up to $110 per form. After August 1, 2021, your W-2 penalties can be $280 per form.

If it seems like you may be ignoring your deadline on purpose, you can be penalized $560 per form.  

How to Avoid Form W-2 Penalties

Your best option for avoiding Form W-2 penalties is to file accurately and on time. If you’re filing on a time crunch, working with an e-filing solution is the way to go. Visit this blog for the top 4 reasons to e-file Form W-2.

When you e-file with 123PayStubs, you can complete your filing process in 3 simple steps. Just enter your information, review for mistakes, and transmit your return directly to the SSA. Get started now and meet your Form W-2 deadline easily!