The Social Security Administration (SSA) handles the collection of wage information – not to be confused with other incomes that are reported on form 1099 or 1042S. The SSA follows a lot of the same regulations as the IRS regarding reporting of wage information including the PENALTIES.
Every business or person who has one or more employees to whom you made payments (including noncash payments) for the employee’s services in your trade or business during the previous calendar year must file a form W2 to the SSA.
W-2 Express is approved by the SSA for W-2, W-3 laser forms on plain paper. Our substitute forms fully comply with the rules in Pub 1141.
Importing data is a breeze with Copy and Paste from Excel! You can do this by going to 'Edit' -> 'Paste from Excel by Header Name' (fourth from the top) or by right clicking on the grid and selecting 'Paste from Excel by Header Name' from the dropdown list.
The SSA encourages all employers to e-file. E-filing can save you time and effort and helps ensure accuracy. You must e-file if you are required to file 10 or more Forms W-2. If you are required to e-file but fail to do so, you may incur a penalty.
With W-2 Express you can eFile directly from your computer to the SSA for FREE if you have an account - or we can do it for you for $75 up to 10,000 records. We provide you with confirmation from the SSA that your file was successfully eFiled and if there are any issues, we will work with you to get the file corrected and resubmitted.
Just like the IRS you must mail or electronically file Copy A of Form(s) W-2 and Form W-3 with the SSA by January 31st each year. You may owe a penalty for each Form W-2 that you file late. You may request only one extension of time to file Form W-2 with the SSA by submitting a complete application on Form 8809, Application for Extension of Time To File.
If you fail to file a correct Form W-2 by the due date and cannot show reasonable cause, you may be subject to a penalty as provided under section 6721.
The penalty applies if any of the following happen to you:
- Fail to file timely
- Fail to include all information required to be shown on Form W-2
- Include incorrect information on Form W-2
- File on paper forms when you are required to e-file
- Report an incorrect TIN
- Fail to report a TIN
- Fail to file paper Form W-2 that are machine readable
The amount of the penalty is based on when you file the correct Form W-2. Penalties are indexed for inflation.
The penalty is:
- $50 per Form W-2 if you correctly file within 30 days of the due date; the maximum penalty is $571,000 per year ($199,500 for small businesses, defined in Small businesses).
- $110 per Form W-2 if you correctly file more than 30 days after the due date but by August 1; the maximum penalty is $1,713,000 per year ($571,000 for small businesses).
- $280 per Form W-2 if you file after August 1, do not file corrections, or do not file required Forms W-2; the maximum penalty is $3,426,000 per year ($1,142,000 for small businesses).
Do yourself a favor and let us handle all these tasks for you. We can TIN match, eFile and print & mail all your forms. Please let us help – give us a call at (361) 884-1500
