Full-Service HR

Last Minute W-2 Tips

Ella Baker
Last Minute W-2 Tips
Reading time 3 Mins
Published on Dec 2

It’s time to start preparing W-2s for your company. Employees depend on their employers to prepare their W-2s accurately and deliver them as quickly as possible, ensuring they’re able to complete their tax returns quickly and correctly. Additionally, the IRS has several rules governing the W-2 process. With all of the potential penalties, it’s vital that employers get this process right.

Know the W-2 Deadlines

W-2’s are  have strict deadlines, and are subject to penalties if not completed accurately and in a timely manner. Staying on track to meet these deadlines can save you a lot of time and headaches down the road.

Before completing and mailing your W-2s, you need to ensure that every employee’s contact information and SSN is correct in your system and on the W-2 form.

Every employer is required to submit W-2 forms to the IRS, and mail a paper copy of the form to employees by January 31 of each year. Additionally, if you paid any independent contractors more than $600, you must file Form 1099 with the IRS and mail a paper copy to the contractor by January 31.

It’s the employer’s responsibility to complete and provide a W-2 form to every worker on time. If you are late filing your employees’ W-2 forms, you may have to pay a fine, and the longer you wait, the higher the fine will be.

Check for Compliance

Before you begin filing your tax documents to the IRS, it’s critical that your payroll documents meet IRS compliance standards.

Keeping your payroll system well-maintained makes W-2 processing easier. A partnership with a PEO that provides payroll processing services can give you access to the compliance support you need. This will help keep your business in-line with IRS payroll regulations.

One of the areas the IRS will look closely at, when reviewing your company’s tax documents, is the classification of your workers. Correctly classifying workers is critical to remaining compliant with IRS rules. If you have independent contractors or freelance workers, check out Independent Contractors: Correctly Classifying 1099s.

Double-Check Your W-2

Something as common as a missed keystroke or switching two numbers on a W-2 form can cost your business hundreds of dollars in penalties. Even with automated payroll processing services, you’ll still need to double-check all the information on your W-2 forms.

Find the right solution

Don’t let W-2 processing get the better of you. Sheakley’s PEO experts have the expertise to deliver human resource solutions to meet the needs of your company. The technology offered by Sheakley, allows for easier management of your employees’ PTO, vacation, check stubs and W-2s. Training and on-going education opportunities offered to your supervisory staff will ensure the management of your business remains compliant.

Learn more about Sheakley’s PEO team and contact us for your free consultation today. Stay up-to-date on all things Sheakley by subscribing to our blog and following us on social media.

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