Every employer ought to provide the employees with W-2 forms and the forms in question should be filled correctly. The employees in question should use the forms to file returns. As an employer, you are supposed to supply these forms to the employees before every end of January to avoid a fine. Any employer who does not supply W-2 forms to the employees by the said date tend to be subject to a penalty.
You would also need to have mailed W-2 forms by January 31st to the IRS. It tends to be possible to request for an extension by writing from IRS and also remember explaining why you are unable to supply W-2 forms before deadline. You may also need to make sure that you send your W-2 forms along with W-3 forms summarizing all the information contained in the W-2 latest by February 29TH. To people eligible to e file returns, they tend to have a deadline of April second.
It would be critical to know of financial penalties that come with late or not filing of returns. In a case where you miss the deadline, you tend to be exposed to a fine of $50 for every W-2 form within the first thirty days. In a case where you are a small business, you are exposed to a penalty of up to $187,500 and a maximum of $536,000 for bigger businesses per year. In a case where you file after between 30days after due date and august first, you tend to be exposed to a penalty of $100 per W-2 form and the fine tends to increase to $1,609,000 and $536,000 for small businesses. After August 1st, your W-2 forms tend to attract $260 per form $1,609,000 and $536,000 for small businesses. Any business with a gross receipts of up to $5 million for the three most recent tax years tend to be classified as a small business in three tax years.
It would also be wise to remember that incomplete, as well as incorrect W-2 forms, tend to equally attract a penalty. In the same manner, illegible forms tend to also attract fines and hence to make sure that all W-2 forms are legible. In a case where you file more that 250 W-2 forms, you may need to know that you are eligible to e-file and sending paper forms may attract a penalty. In a case where you make an error on W-2, you may make corrections on a new form and notify IRS of the revision.