Last chance to change W-2s is nearing
Posted on July 1st, 2016
By Brittany Llorente
Media Marketing Associate
Most payroll personnel are not close to thinking about W-2s. The Year-End 2016 process is too far away and the 2015 process ended (likely with champagne and confetti) back in February and March. However, it is still very important to remember the W-2 date that falls on August 1.
What happens if the W-2s are not corrected and the IRS discovers an error later?
The errors that the IRS finds that lead to penalties, according to Wolters Kluwer, are:
- Taxpayer identification number
- The Surname of the person required to be furnished with the information set forth on the form
- Any monetary amount
This year, errors will cost more as the IRS has increased the penalties for incorrect forms. The rates are as follows for failing to file a W-2, filing an incomplete W-2, or providing incorrect information:
- W-2s corrected more than 30 days after the original due date but on or before August 1 is $100 per W-2, with up to a maximum of $1,589,000 in a year ($529,500 for small businesses).
- W-2s corrected after August 1 is $260 per W-2, up to a maximum of $3,178,500 in a year ($1,059,500 for small businesses).
- An additional penalty is applied for complete or corrected W-2 forms not distributed to the employee.
Need help e-filing? Email us at firstname.lastname@example.org for more information.