When Are W-2 Forms Due?
W-2s are due to employees by Jan. 31 for the previous calendar year. If Jan. 31 is a weekend or holiday, the reports are due the next working day. However, sometimes the Internal Revenue Service (IRS) establishes specific end-of-year payroll tax reporting due dates for each year. W-2 forms are due to the Social Security Administration (SSA) by Jan. 31. Once employers have sent out W-2 forms to employees, the forms must also be sent with the transmittal form W-3, to the Social Security Administration (SSA).
W-2 Reporting for COVID-19 Payments
If applicable in 2021, there were two 2020 COVID-19 relief measures that affected employee wages and salaries that must be reported on W-2 forms.
Deferral of Employee Social Security Tax
An executive action in August 2020 allowed employees to defer their Social Security tax withholding between Sept. 1 and Dec. 31, 2020. The employee portion of the 2020 Social Security tax-deferred withheld in 2021 but not reported on the 2020 Form W-2 must be reported in box 4 (Social security tax withheld) on Form W-2c, Corrected Wage and Tax Statement. On Form W-2c, tax year 2020 should be entered in box c and adjust the amount previously reported in box 4 (Social security tax withheld) of the Form W-2 to include the deferred amounts that were withheld in 2021.
Paid Sick Leave and Family Leave
The Families First Coronavirus Relief Act (FFCRA) required employers to pay employees for COVID-related absence, with sick pay and family leave payments. If you made either or both of these payments to employees during 2021, you must report amounts as follows:
In Boxes 1, 3 (up to the Social Security maximum), and 5, and alsoBox 14 (the same amount as Box 1) or on a separate statement
You must also label the payments, depending on the type of payment:
“Sick leave wages subject to the $511 per day limit” “Sick leave wages subject to the $200 per day limit”“Emergency family leave wages”
Gathering Information to Prepare W-2 Forms
The information for this form comes from your payroll register, which shows year-to-date totals for each employee for wages and withholding, along with deductions for medical plans, health savings accounts, and other items.
Parts of the W-2 Form
Below are the parts of the W-2 form and what they are used for:
Copy A goes to the Social Security Administration (SSA). Copy A is usually printed on a red form.Copy 1 is for the city, state, or localityCopy B is for filing with the employee’s federal tax returnCopy C is for the employee’s recordsCopy 2 is another copy for another city, state, or localityCopy D is for the employer’s records.
How to Prepare Form W-2
This information is a general overview of the process for completing a W-2 form. See the Instructions for Form W-2 for more details. Employer information: For each W-2 you prepare, you will need to include information about your business, including employer ID number (EIN) and employer name and address. Control number: You may want to add an internal control number on each W-2 if you are paying many employees. You can generate the number yourself, or your payroll preparation software may generate this number. Employee earnings:
Total wages, tips, and other compensation (Box 1), which is gross pay for all hourly and salaried employees. Total amount of withholding (Box 2) Total Social Security wages (up to the Social Security maximum) (Box 3).
Total Social Security Tax Withheld (Box 4) Total Medicare wages and tips (Box 5) Medicare tax withheld (Box 6). This amount includes the amount of additional Medicare tax for higher-paid employees. Social Security tips (Box 7) and allocated tips(Box 8) (Check to make sure you separate reported tips from allocated tips.)
Next, you will need information about employees and total wages and withholding for each employee for last year: Other payments. You may have paid advance EIC payments (earned income credit)(Box 9) and dependent care benefits (Box 10) paid to employees.
Information on Retirement Plan Participation and Statutory Employees
On each W-2, you must check the appropriate box if the employee participates in a retirement plan (Box 13) or a non-qualified plan (Box 11), if this employee is a Statutory Employee (Box 13), or if the employee received third-party sick pay (Box 13). Box 12 is for amounts for other compensation or reporting. You can enter up to 4 types of compensation. Some of the most common information items for Box 12:
Uncollected Social Security, RRTA (railroad retirement), or Medicare tax on tips or group life insuranceElective deferrals to 401(k), 403(b), and other qualified retirement plansNon-taxable sick payGolden parachute paymentsExcludable reimbursed moving expensesContributions to medical savings accounts or health savings accountsNon-statutory employee stock optionsDesignated Roth contributions under 401(k) or 403(b) plans
Cost of employer-sponsored health coverage, using Code DD, according to the reporting requirements of the Affordable Care Act Entries in Box 14 are for other deductions or compensation that must be disclosed to employees for their tax returns. For example
State and Local Information
In this section, you will enter information about state and local wages and withholding. Note that there is space for two states and two localities on the form. If an employee has worked in more than two states or localities during the year, use a second W-2 to include the additional information. Enter:
Your two-letter state code and your business’s state tax ID number (check with your state’s department of revenue) (Box 15) State wages (Box 16) State income tax withheld (Box 17) Local wages, if any (Box 18) Local income tax withheld (Box 19) Locality name (Box 20)
Mailing W-2 Forms or Filing Online
If you are printing and mailing your own W-2 forms, you may obtain them from several sources.
The IRS Forms Order website (takes 7-15 days) An online forms supplier or office supply store. Your tax preparer or payroll service Some business tax preparation software
You may NOT print out the W-2 forms from a webpage because Copy A can’t be scanned. You can file your W-2 form online with the Social Security Administration by enrolling in the Business Services Online service. You MUST file online if you have 250 or more W-2s to file. If you are filing your W-2 forms online with the Social Security Administration, you don’t need to include a W-3 transmittal form.
Distribute and File W-2 Forms
To the Employee: Copies B, C, 1, and 2 To the Social Security Administration - Copy A. The SSA requires that you send Copy A from each employee’s W-2 by January 31 of the following year.
