IRS Form W-2 Changes for the
2024 Tax Year
New Form W-2 Changes for the 2024 Tax Year
Updated on October 30, 2024 - 10:30am by, TaxBandits
Starting from the 2024 tax year, the IRS has increased the Form W-2 penalty rates due to adjustments for inflation and increased the social security wages base from $160,200 to $168,600. Continue reading to learn more about the IRS changes in Form W-2 for the 2024 tax year.
In this article, we cover the following topics:
1. What are the changes to Form W-2 for 2024?
The IRS has made several updates to the Form W-2 for the 2024 tax year.
Employers should be aware of the
following updates.
-
Change 1: IRS Adds BOX 12 Code II for Medicaid Waiver Payments
For the 2024 Tax Year, the IRS Adds Box 12 Code II for Income from the Exclusion of Medicaid Waiver Payments (IEMWP-II).
-
Change 2: Updates to Social Security wage limit
The SSA has increased the social security wage limit from $160,200 to $168,600 for the tax year 2024. Therefore, you must ensure the following when completing W-2.
- The total of Box 3 (Social Security wages) and Box 7 (Social Security Tips) should not exceed $168,600.
- Box 4, the Social Security tax withheld, should not exceed $10,453.20 ($168,600 × 6.2%).
-
Change 3: Penalty Changes
The IRS has increased penalties for failing to file Forms W-2 to account for inflation. The updated penalty amounts are in the table below.
| Number of days late | For 2023 Tax Year | For 2024 Tax Year |
|---|---|---|
|
Filed within 30 days |
$60 per form to a maximum penalty of $630,500 per year ($220,500 for small businesses). |
$60 per form to a maximum penalty of $664,500 per year ($232,500 for small businesses). |
|
Filed after 30 days and |
$120 per form to a maximum penalty of $1,891,500 per year ($630,500 for small businesses). |
$130 per form to a maximum penalty of $1,993,500 per year ($664,500 for small businesses). |
|
Filed after August 1 |
$310 per form to a maximum penalty of $3,783,000 per year ($1,261,000 for small businesses). |
$330 per form to a maximum penalty of $3,987,000 per year ($1,329,000 for small businesses). |
|
International Disregards |
$630/form to no maximum limits |
$660/form to no maximum limits |
Learn more about IRS penalties by visiting https://www.taxbandits.com/w2-forms/form-w2-penalty/
2. When is the Form W-2 deadline for 2024?
The Form W-2 is required to be filed with the IRS/SSA and distributed to employees no later than January 31, 2025. If the W-2 deadline for filing falls on a weekend or federal holiday, the next business day becomes the deadline.
3. Advantages of E-filing Form W-2 with TaxBandits
E-filing your Form W-2 with TaxBandits offers numerous advantages tailored to simplify and enhance your filing experience. Our e-filing process is specifically designed to take the guesswork out of filing forms for your business or on behalf of your clients.
With TaxBandits, you can file your Form W-2 with SSA and State and distribute employee copies to your recipients through either mail or a secure online portal.
TaxBandits allows you to file multiple returns by importing your data through CSV templates. Plus, you can easily connect TaxBandits with your favorite accounting software to easily import your data and complete your filing easily without the need for any code or third-party software.
Additionally, you can take advantage of these additional filing features:
- Support for W-2 correction
- Internal audit check
- Excellent live customer support
- Multiple user access for CPA and tax pros
- Online client portal to communicate with your clients
- Flexible pricing
Get started with TaxBandits today and e-file W2 as the lowest price in the industry. E-File Now
4. How to File Form W2 for 2024?
Filing your Form W2 with TaxBandits is an easy and simplified process; follow the simple steps below:
- Step 1: Create an account and choose W-2 Form
- Step 2: Enter the Form W2 Information
- Step 3: Review the Form summary
- Step 4: Transmit it to the SSA & State
- Step 5: Distribute the recipient copies
If you have opted-in to postal mailing or online access services, TaxBandits will take care of the distribution of your recipient copies on your behalf.
