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Frequently Asked Questions
What is a Form W-2?
Form W2 is the Wage and Tax Statement. This form must be filed with the Social Security Administration each year by employers to report the annual wages and taxes withheld from their employee’s paychecks. The information reported on Form W-2 includes wages and compensation paid to the employee, the amount of federal and FICA taxes withheld from the employee's paycheck, and other additional benefits offered to the employee.
What's New to Form W2 for the 2024 tax year?
The IRS has made a few changes to Form W-2 for the 2024 tax year. These changes are listed below:
- For the 2024 tax year, the social security wage limit has been increased from $147,000 to $160,200.
- The penalty rate for Form W-2 has been increased due to an adjustment for inflation.
Click here for more detailed information about the latest Form W-2 updates.
Who must file Form W-2?
Any business that pays wages to employees and withholds taxes from their paychecks is responsible for filing Form W-2 with the SSA. They are also required to distribute a copy to their employee.
Do Form W-2 need to be filed with the State?
The state filing requirements for Form W-2 vary depending on the state. Some states mandate filing of Form W-2 to report state withholding information, while others have no state filing requirements. It is very important that employers check their state filing requirements for Form W-2.
What information is required on Form W-2?
According to the IRS Form W-2 instructions, the following information is required to Complete
Form W-2:
- Employer Information: EIN, Employer’s Name, Address, and ZIP code.
- Employee Information: SSN, Employee's Name, Address, and ZIP code.
- Information about the wages and tips that you have paid your employees throughout the year.
- Information about the taxes that you withheld from your employee's wages or tips this year.
- For state filing, you will need your state ID and locality name.
For more information on filling out Form W-2, Click here.
What are the Form W-2 Copies?
There are multiple copies of IRS Form W-2, and each of them has its own different reporting purpose.
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Copy A - This should be filed with SSA (Social Security Administration).
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Copy 1 - This should be filed with the city, state, or local municipality if required.
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Copy B - This should be filed with the employee’s federal taxes.
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Copy C - This is for the employee’s records
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Copy 2 - This should be filed with the employee’s state taxes if required.
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Copy D - This is for the employer’s records.
What is the threshold for e-filing Form W-2?
The current e-filing threshold for businesses is 10 forms. This means any business filing more than 10 W-2s must file them electronically with the SSA.
E-filing is more convenient than paper filing, it not only reduces errors, but the filing process is simpler.
Looking for an e-file provider to simplify your Form W-2? TaxBandits has your solution, we are an IRS-authorized e-file provider that supports e-filing with the SSA and state, as well as options for distributing employee copies.
E-file your Forms W-2 with TaxBandits today to remain compliant with the IRS.
What is a Form W-2c?
The Form W-2c is also called the Corrected Wage and Tax Statements Form, used to correct or amend a Form W-2.
Form W-2c should be filed with the SSA to amend errors on an original Form W-2. The employee’s name, SSN, Tax Year, EIN, and errors in reported wages or taxes withheld can be corrected by filing Form W-2c.
What is a Form W-3c?
A Form W-3c is a transmittal form that summarizes the corrected information found in Form W-2c.
Form W-3c is only required when Form W-2c is paper filed with the SSA. If you are e-filing this correction form, you are not required to submit Form W-3c.
Can you file an extension for Form W-2?
Extensions for Form W-2 are not automatic. If you are filing an extension for W-2s, then you must paper-file the Extension Form 8809 and provide a detailed reason for needing the extension. The SSA will only grant a 30-day extension under extraordinary circumstances, such as a catastrophic event. The 30-day extension does not apply to your recipient copies.
What are the penalties for not filing Form W-2?
Failing to file Form W-2 before the deadline or providing incorrect information can result in IRS penalties. The penalty rates vary from $50 to $630 per form based on the business size and the time when the Form W-2 was submitted to the IRS. Click here to view the IRS penalties for Form W-2
File your W2 forms securely and accurately with the SSA and State. You can opt-in to postal mailing services from TaxBandits to complete your employee copy requirements. Get Started with TaxBandits
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