The Complete Checklist To Prepare for the W2 Deadline

If you're running a business or you're employed, you've probably seen a Form W-2. This document is also known as the Wage and Tax Statement. It contains employee income and tax-related information. Every year, all employers must prepare this tax statement for each of their full-time employees. Therefore, both employers and employees should be aware of this W2 deadline.

A Form W-2 indicates an employee's income for the previous tax year. It also shows the taxes deducted from all types of income. This Form is usually transmitted to the Social Security Administration (SSA) and the Internal Revenue Service (IRS) for validation. You can generate it online if you're looking for a quick way to create a W2 Form.

Filing W-2 and other types of tax forms can be confusing, especially if your business has never done it before. In this article, you'll get a curated preparation checklist to help you get ready ahead of the W2 deadline.

Wage and Tax Statements: Who Should File Form W-2?

Employers who have one or more employees to whom they paid wages, salaries, or compensation are required to send out a Form W-2.

Also, a Form W-2 is needed for any businesses that withheld income, Social Security, or Medicare tax from an employee's wages. They must do so irrespective of the income amount. 

Lastly, an employer must file this form too paid $600 or more in wages. This applies even if you did not withhold any income, Social Security, or Medicare tax. They do not apply to independent contractors, as they receive non-employee compensation.

W2 Deadline: When is Form W-2 Due?

You can file the W-2 form in two ways: online or by mail. So, the W2 deadline to submit online or by mail is January 31 of the following calendar year. This is the final W2 form deadline. It is also the due date for employers to send W-2s to their full-time employees. Employers are responsible for completing Form W-2 for their employees. 

So, when must employers send W2? By January 31. If this W2 deadline falls on a non-working business day, it is then moved to the next business day. For example, a business day like Saturday, Sunday, or a legal holiday is moved to the next business day, like Monday. W-2s and original Form W-3, or Transmittal of Income and Tax Statements, are sent to the Social Security Administration.

The IRS grants an extension in extraordinary circumstances, for example, a natural disaster. For this, a taxpayer must submit a Form 8809, Application for Extension of Time to File Information Returns. This Form 8809 must be submitted before the original due date.

If they get a positive response from the IRS, it means a one-time 30-day grace period for Form W-2 submission. Ultimately, this can help you avoid costly penalties.

What Information Is Required in Form W-2?

Before filling out the original form online or on paper, you must have this type of information ready. It helps for accurate W-2 preparation:

Employer Information:

• Employer identification number

• Business name, address, and ZIP code

• State ID number

• State and local wages and tips

• State income tax

Employee Information:

• Employee's Social Security number

• Employee's name and address

Employers must always be ready to prepare employee wages or income and withholding tax information for the previous year. While doing this, make sure that the information is accurate. 

The following conditions or details are necessary for completing the Form W-2:

• Wages, tips, and other compensation

• Social Security wages

• Medicare wages

• Social Security tips

• Dependent care benefits

• Federal income tax withheld

• Social Security tax withheld

• Medicare taxes withheld

• Allocated tips

• Retirement plans and elective deferrals

For businesses filing Forms W-2 for the first time, they may need the help or advice of a tax expert. If there's any incorrect information on the Form W-2, it can lead to costly penalties. Therefore, you need to be careful in order to avoid penalties.

Preparation Checklist for Filing Online W-2 Tax Returns

Before you start this filing, you must:

1. Register Online

When registering, ensure you meet the system requirements.

2. Create a Social Security Administration Business Services Online Account

Before the W2 deadline or date of submission on January 31, businesses must register. They need to create an account with the Social Security Administration's Business Services Online (BSO). Here's how to do it:

• Visit SSA Business Services Online and click the "Register" button.

• Refrain from using the back, forward, and refresh buttons. This will clear the information in your registration form.

• Provide an e-mail address. This allows you to access SSA's electronic newsletter for tax and wage reporting updates.

After your BSO registration, your business now has access to different services such as:

• Social Security number verification

• Uploading wage file

• Filling up, submitting, and reviewing forms W-2 and W-2c forms. A W-2c form is also known as the Corrected Wage and Tax Statement Form. It is an IRS document that is used to amend entries in the submitted Form W-2.

• Saving submitted forms to your computer.

• Monitoring employer report status or checking reports for errors

• Checking submission status

• Requesting a resubmission extension

3. File W-2 forms online through your BSO account

Here's what you need to do:

• Log in to your account.

• Go to the 2 Electronic Wage Reporting (EWR SSA) home page.

• Click the "Create/Resume Forms W-2/W-3 Online" link under the Forms W-2/W-3 Online tab on the EWR SSA homepage. This is to start your online W2 preparation.

• Proceed to the "Before You Create Your Form(s) W-2/W-3" page. Then, fill in the applicable tax year, Employer's ID number, and type of Form W-2.

• Verify that the employer information is correct for the wage report.

• Provide all the information required.

• Validate information contact to ensure you get all important notifications on time.

• You can use pre-filled Form W-2 information from the previous year or create a new one.

• Once you have entered the correct information, proceed to the W-3 Preview. This way, you can access the submission page. As mentioned earlier, businesses should submit Forms W-2 and W-3.

• If you want to make sure the details are correct, print copies of unsubmitted W-2s and W-3 forms.

• Once verified, you can go back to your W-2 list for submission.

• Read and understand the statement, then click the submit button if you agree.

• Wait for the confirmation receipt.

• Print the page as it includes the Wage File Identifier (WFID) and employer details. The printed copy indicates the time and date received. WFID is needed to monitor your submission status.

• Save or download a copy.

Keep in mind that registration may take up to two weeks, so complete it well before January 31.

Correcting Mistakes on the Submitted W-2 Form

It's possible to make mistakes when filing your tax returns. If you've just realized you've made certain errors after submitting your online Form W-2, you can always correct them. What you should do:

• Log in to your BSO account.

• Go to the BSO Wage Reporting Service page.

• Access both your Form W-2 and Form W-3 and make the necessary corrections.

• Submit the e-form with the correct details.

• Download and save a copy.

Employers should also provide corrected copies (W-2c) to affected employees. SSA requires both electronic and employee corrections.

Always ensure that your W-2 is accurate and free from errors. It can help when you need proof of income and to plan your finances. Another document you can use as proof of income is your pay stub. To create it, simply use the 123 paystub approach to make your pay stubs easily. A plus is that you have multiple paycheck stub templates to choose from.

Is Your Business Allowed To File Paper W-2s?

Despite the convenience of online Form W-2 filing, some employers may prefer to do it through a paper form. You may want to file Form W-2 on paper even though your business is mandated to file electronically. You just need to fill in a waiver and file Form 8508. You can also request a Waiver from Filing Information Returns Electronically. This document must be submitted at least 45 days before the Form W-2 submission deadline. 

State legislations vary on which businesses are required to file forms W-2 electronically. For example, in Massachusetts, companies with fewer than 49 full-time employees may choose to file W-2 paper forms. Additionally, in Rhode Island, employers with more than 25 full-time employees are required to file Form W-2 electronically. 

Companies will also have to check local tax laws to determine whether they qualify to mail their Form W-2. To file your business taxes, there are different business tax deadlines you should know.

How To File a Paper W-2 Form

Check the steps below to file your Forms W-2 on paper:

1. Get an authorized W-2 and W-3 copy

First, you need to go to the IRS website to access and download your W-2 and W-3. This is what you should and shouldn't do:

• Download, fill in, and print the W-2 and W-3 forms.

• Don't print Copy B of the Form W-2 and Form W-3 and file with the SSA. This is because the latter uses scanners to read the submitted documents. It is highly sensitive to minor differences. Even the slightest changes can lead to inaccurate scanning. It may affect the total amount reported or indicated in the Form.

• Instead, you can submit approved substitute versions that represent the exact reproduction of the authorized IRS forms.

2. Fill in the Form (s)

What you should and shouldn't do:

• Use a pen with black ink when filling out the Form.

• You're not allowed to make any alterations in the Form W-2. Especially not with the total amount and decimal places.

• Make sure all the entries are correct.

3. Send to SSA via mail

Once you're done, send copies or samples of W-2s for each employee. Send via mail to the Social Security Administration. Include the W-3 transmittal form. Remember that W-2s must be mailed by the W2 deadline. Within 30 days, you should receive a response from either the IRS or the SSA. Send Copy B of Form W-2, if required, to your state, city, or local tax department.

Bottom line

The form W-2 indicates the total wages and compensation earned by your employees. Employees use this form to prepare their personal tax returns. It is only for the applicable tax year. As an employer, you're responsible for ensuring that all entries are accurate. One mistake could have a serious effect on your business and staff. Eventually, this can lead to penalties.

It is important to start preparing early to file your Form W-2. To create a W-2, use our W2 maker to create it easily. Our tool is fast and simple. You may also be looking to generate your pay stub. Use our real pay stub maker and download your pay stub immediately.