As part of The Protecting Americans from Tax Hikes (PATH) Act of 2015 passed by Congress and signed by President Obama earlier this month, the deadline to file W-2s with the Social Security Administration has changed to January 31, 2017 whether it’s filed electronically or on paper.
Previously, W-2s had to be sent to employees and postmarked by January 31. W-2s were not required to be filed until February 28 (paper) or March 31 (electronically).
The PATH Act
The PATH Act states the following: “Forms W–2 and W–3 and any returns or statements required by the Secretary to report non-employee compensation shall be filed on or before January 31 of the year following the calendar year to which such returns relate.”
Penalty Safe Harbor
Because employers have less time at year-end to send in their forms, the PATH Act will not result in penalties nor require corrections submitted if either type of the following errors are made:
- No single amount in error differs from the correct amount by more than $100
- No single amount reported for tax withheld on any information return differs from the correct amount by more than $25
How to Prepare
We are working to ensure the W-2s of our clients’ clients are submitted correctly and in time every service bureau, PEO, ASO, staffing firms, CPAs, benefits brokers, HR consultants, and other remarketers. If your payroll tax management provider hasn’t discussed this change with you yet and what they’re doing about it, contact us to learn more about how we can help you.