The 2020 tax season is upon us and it’s time for employers to file their employees’ W2 Form. Additionally, they must also provide copies to recipients by the January 31st deadline.
If you haven’t begun filing your W2 Form, don’t worry. There’s no need to hire an expensive accountant to file for you or spend hours trying to understand the form yourself. PayWow’s partners at TaxBandits have designed the perfect e-file tax solution! TaxBandits was developed to allow you to quickly e-file IRS Form W-2 and distribute copies to your employees.
What You Need To Know To File A W2 Form For Your Small Business
IRS W2 Form…What’s That?
Form W-2 serves as an annual statement that provides a list of all compensations offered to employees. These compensations include income, Medicare and social security tax withheld during the year. Your employees will need this information to complete their personal income tax returns.
Failing to file Form W-2 or issue copies to employees by the January 31 deadline is subject to extensive IRS penalties.
Failing to file by the IRS deadline results in a penalty of $30 per W2 Form. After 30 days, this penalty grows to $60 per form, with a maximum penalty of $500 or $200 for small business owners.
After August 1st, the penalty extends to $100 per return with a maximum penalty of $500 for small businesses and $1,500 for others. A small business is defined as one with $5 million or less in gross receipts for the three most recent tax years.
Avoid Paper Filing By E-Filing With TaxBandits
Say goodbye to filing a W2 Form by hand. It takes hours to complete and is more prone to errors that can easily be avoided by filing electronically.