Employer's Guide: Navigating the Filing Season and Meeting Deadlines
As the filing season commences, it's crucial for employers to stay informed and prepared. The Internal Revenue Service (IRS) has recently issued a reminder, emphasizing the importance of the upcoming January 31 deadline for filing Forms W-2 and other wage statements with the Social Security Administration (SSA). This deadline is pivotal for a variety of reasons, and meeting it is beneficial both for employers and employees.
Key Deadlines and Requirements
Forms W-2 and W-3
Employers must file their 2023 Form W-2, Wage and Tax Statements, and Form W-3, Transmittal of Wage and Tax Statements, with the SSA by January 31. This deadline applies whether you are filing electronically or using paper forms.
Form 1099-NEC
For those reporting non-employee compensation to independent contractors, the January 31 deadline also applies to Forms 1099-NEC filed with the IRS.
Distribution to Employees
Remember, employers must also provide copies B, C, and 2 of Form W-2 to their employees by January 31.
The Importance of Accurate Employer Identification Numbers
A critical aspect of filing is ensuring the employer identification number (EIN) on wage, tax statements, and payroll tax returns matches the EIN assigned by the IRS to your business. Incorrect use of an EIN, Social Security number, or Individual Taxpayer Identification number can lead to complications.
Extensions: Understanding Your Options
If necessary, employers can request a 30-day extension to file Forms W-2 with the SSA by submitting Form 8809 by January 31. However, keep in mind that extensions to furnish Forms W-2 to employees must also be requested by this date.
Embracing Electronic Filing
In 2024, the threshold for electronic filing of information returns has been reduced from 250 to just 10. This change means more employers will need to file electronically. The IRS's free e-file service, the Information Returns Intake System (IRIS) Taxpayer Portal, offers a convenient and secure way to file various forms, including the Form 1099 series.
Electronic filing is not only secure but also the most efficient method, ensuring accuracy and reducing processing delays.
Where to File Electronically
For Forms W-2, visit the SSA’s Business Services Online. For information on electronic filing of other forms, consult Publication 1220 and the FIRE webpage.
Final Thoughts
Meeting these deadlines is crucial for avoiding late-filing penalties and ensuring your employees can file their income tax returns promptly. It also plays a significant role in preventing tax fraud. By staying informed and proactive, employers can navigate this filing season smoothly and maintain compliance with ease.
DISCLAIMER:
This blog does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. The information presented in this blog may not reflect the most up-to-date legal developments and is subject to change at any point in time. The information presented in this blog does not create an attorney-client relationship. Readers of this blog should contact their attorney to obtain advice regarding any particular legal matter. No readers should act or refrain from acting based on the information presented in this blog without first seeking legal advice from counsel in the relevant jurisdiction. No representations are made that this blog is error-free. Altaffer & Chen PLLC expressly disclaims all liabilities arising from any actions taken or refrained from based on the information presented in this blog.
1/29/2024
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