W-2 Filing Deadline Approaches: What You Need to Know for Tax Season

With tax season fast approaching, the Internal Revenue Service (IRS) has mandated that all employers must submit Form W-2 (Wage and Tax Statement) by January 31, 2025. This deadline applies both to providing employees with their copies and submitting them to the Social Security Administration (SSA). Employers who fail to meet this deadline may face significant penalties, potentially delaying tax returns for employees.

W-2 Filing Overview

Topic	Details
Deadline	January 31, 2025
Who Must File?	Employers who paid wages subject to Social Security & Medicare taxes
Submission Methods	Electronic filing (preferred) or mail submission to the SSA
Penalty for Late Filing	Up to $630 per form, depending on delay
Official IRS Resource	www.irs.gov

The January 31, 2025 deadline underscores the importance of early preparation. Employers are strongly encouraged to file electronically to minimize errors and ensure timely submission. Mistakes such as incorrect employee details or missing required forms can lead to compliance issues and penalties.

Understanding Form W-2 and Its Importance

Form W-2 is a crucial document summarizing an employee’s earnings and tax withholdings for the year. It serves multiple purposes:

• Employees need W-2s to accurately file their federal and state tax returns.
• Employers submit W-2s to the SSA to maintain accurate earnings records.
• The IRS relies on W-2 data to verify tax compliance and detect fraud.

Step-by-Step Guide to Filing W-2 Forms

1. Gather Employee Information

Employers must collect the following details for each worker:

• Full name and address
• Social Security number (SSN)
• Total wages, tips, and other compensation
• Federal, Social Security, and Medicare taxes withheld
• Employer Identification Number (EIN)

2. Complete Forms W-2 and W-3

• Form W-2: Distributed to employees and submitted to the SSA.
• Form W-3: A summary transmittal form accompanying W-2 submissions.

Employers must distribute copies as follows:

• Copy B, C, and 2: Provided to employees for tax filing.
• Copy A: Sent to the SSA.
• Copy D: Retained for employer records.

3. Choose a Filing Method

Electronic Filing (Recommended):

• Required for employers filing 10 or more W-2s unless exempt.
• Submit forms securely via the SSA’s Business Services Online (BSO) portal.
• Reduces errors and speeds up processing.

Paper Filing:

• Must include Form W-3.
• Must be typed (not handwritten) to prevent rejection.
• Mailed to the SSA’s processing center.

4. Provide Employee Copies

Employees must receive their W-2 forms by January 31, 2025. Forms can be mailed or provided electronically (with employee consent).

Common W-2 Filing Mistakes to Avoid

• Missing the deadline – Late submissions can result in penalties from $60 to $630 per form.
• Incorrect employee details – Errors in names or Social Security numbers can cause processing delays.
• Failure to report non-cash compensation – Bonuses, stock options, and other benefits must be included.
• Filing paper forms instead of e-filing – Employers with 10+ W-2s must e-file unless exempt.

W-2 Filing Penalties for Late or Incorrect Submission

Delay Period	Penalty per W-2
1–30 days late	$60 (max $630,500/year)
31 days–August 1	$130 (max $1,261,000/year)
After August 1 / Not Filed	$310 (max $3,783,000/year)
Intentional Disregard	$630 per form (no limit)

For small businesses with annual revenue under $5 million, penalty caps are lower.

FAQs About W-2 Filing

1. What if an employer doesn’t send W-2s by January 31?
Employees should first contact their employer. If the form isn’t received by mid-February, they can file Form 4852 as a substitute.