Annual Payment Reports to Payees
For the 2020 tax year, employers must provide employees with a Form W-2 by February 1, 2021. The same deadline applies for completing and providing the 1099-NEC. Both W-3 and 1096 summation forms are also due to the appropriate government agency by February 1, 2021, unless you file online. For 2020 payments reported in 2021, use Form 1099-NEC to report payments to non-employees. You must also give 1099-NEC forms to non-employees you paid $600 to in 2020. These reports must be given to recipients by February 1, 2021 If you aren’t sure whether to send a W-2 or a 1099-NEC to someone, read about who should receive a W-2 or a 1099-NEC.
Submitting W-2s and 1099 Forms to Federal Agencies
You may want to file your W-2s and 1099-NEC forms online. In 2021 you must file online if you have 100 or more forms of each type. Beginning in 2022, you must file online if you have 10 or more forms of each type. W-2 forms must be submitted to the Social Security Administration by February 1, 2021. To file W-2s online, you can use the Social Security’s Business Services Online portal. 1099-NEC forms must be submitted to the IRS by February 1, 2021. To file 1099-NEC forms online, you can use the File Information Returns Electronically (FIRE) system, or use tax accounting software or a payroll service.
Penalties for Late Filing
The IRS has set penalties for employers who do not comply with tax filing deadlines with the IRS and Social Security Administration deadlines. Penalties may be imposed if you do one of the following:
Fail to file the correct forms by the due dateHave intentional disregard of filing requirementsFail to furnish W-2 or 1099 to workersFile the wrong form for a worker (giving a 1099-MISC to someone who should receive a W-2)
Penalties can be charged on a per return basis with a maximum level set by the IRS
Filing Dates for States
The W-2 and 1099-NEC are used by workers on both their federal and state taxes. Some states may have an earlier filing date requirement so it can also be important to check individual state deadlines for payroll filings. Check on the filing date and other requirements for your state by going to your state tax division.
Other Payroll Tax Reports Due in January 2021
In addition to the annual wage and tax reports for employees and non-employees, you have several other payroll tax reports due normally on January 31.
The Federal Unemployment Tax Report on Form 940 for 2020 is due February 1, 2021. Form 941 (Employer’s Quarterly Federal Tax Form) for Fourth Quarter 2020 is due February 1, 2021.
Help With Preparing and Filing Wage and Tax Reports
If this is your first time filing W-2 forms and 1099-MISC forms, learn the process of preparing, filing, printing, and sending W-2 forms. For 1099-MISC forms, read more about what to do before you prepare these forms, and then follow the step-by-step directions for completing the forms.
