If you’re over the age of 16 and working, then you most likely already know what a W-2 is, but do you know all of the rules and regulations behind them? Do you know what’s new as of 2013? As an employer, are you aware of the deadlines for filing and getting W-2’s to your employees? No worries, we can help simplify the process!
If you’re an employer, you owe a W-2 to any employee who earned over $600 while working for you. As an employer it is recommended that you e-file your W-2s for more accurate and faster information. If you’ve got more than 150 employees that require a W-2 from your company, you are required to e-file. We can help!
As an employer, it is also important that you know the changes made to the W-2 as of January 2013. There was a limit placed on the amount of flex spending contributions that an employee could make pre-tax. There was also an increase in the Medicare tax withholding amount for any employee that makes in excess of $200K during the year.
The IRS has strict penalties for employers that do not meet the deadline for filing W-2s or file incorrect W-2s. Penalties start at $30 per W-2 for large businesses. Fines are applicable for small businesses as well, but can be avoided in both cases by filing for a 30 day extension.
If you’re an employee, your employer must have a copy of your W-2 mailed to you by the end of January for your tax filing purposes. Should your employer fail to meet this deadline, the IRS penalizes your employer for their neglect.
As always, we are here to help. Don’t let the hassle of late filing effect your bottom line. Be sure to E-file your W-2 with us and allow us to e-file the federal copy, mail the recipient copy, and create a PDF form of the payer copy!
Sources:
http://www.onlinefiletaxes.com/
http://www.irs.gov/pub/irs-pdf/iw2w3.pdf
http://smallbusiness.chron.com/businesses-fined-not-mailing-w2s-26359.html