Reminder: January 31 Deadline for Wage Statements and Information Returns
As the 2024 tax season begins, the IRS reminds employers and businesses of the critical January 31 deadline to submit wage statements and certain information returns. Meeting this deadline is essential for compliance, preventing fraud, and ensuring a smooth filing process.
What’s Due on January 31?
By January 31, 2024, employers are required to file:
Forms W-2, Wage and Tax Statement: Used to report wages paid to employees and taxes withheld.
Form W-3, Transmittal of Wage and Tax Statements: Filed with the Social Security Administration (SSA) to summarize all W-2 forms.
Certain Information Returns (e.g., Forms 1099-NEC): Used to report payments made to non-employees, such as independent contractors.
These forms must be provided to both the IRS and the respective employees or recipients by this deadline.
Why Is This Deadline Important?
Timely filing of these documents helps:
Prevent Tax Fraud: Early submission allows the IRS to verify income and prevent fraudulent tax refund claims.
Avoid Penalties: Late submissions may result in financial penalties for non-compliance.
Ensure Employee Accuracy: Employees rely on accurate W-2s and other forms to file their own tax returns on time.
Tips for Meeting the Deadline
Organize Early: Gather payroll and payment records for employees and contractors to prepare forms efficiently.
Use Electronic Filing: The IRS encourages businesses to file electronically, as it is faster, more secure, and minimizes errors.
Double-Check Information: Ensure accuracy in reporting Social Security numbers, wages, and tax withholdings.
Consult Payroll Software or Services: Leverage tools or third-party services to streamline the filing process and ensure compliance.
Plan for Holidays and Delays: Account for potential delays due to holidays or system downtime and aim to file early.
What Happens If You Miss the Deadline?
Failure to file or filing incorrect forms can result in penalties, which increase based on how late the forms are submitted. In addition to financial costs, late filing can also create delays for employees and contractors needing accurate documents for their tax returns.
While employers and payers may request a 30-day extension to file W-2s or certain information returns, approvals of extensions are not automatic. To request extra filing time, submit Form 8809, Application for Extension of Time to File Information Returns PDF, by Jan. 31 or by the due date of the returns being requested.
Resources for Employers
The IRS provides detailed resources to help businesses meet their filing requirements:
Final Thoughts
The January 31 deadline is a critical date for employers and businesses to ensure compliance with tax regulations. By filing accurate Forms W-2, W-3, and other information returns on time, businesses can avoid penalties, prevent fraud, and support their employees and contractors
during tax season. Start organizing your records and meet with your tax professional to stay ahead of the deadline. A little preparation now will ensure a smooth tax season for everyone involved.
Disclaimer: This article is for informational and educational purposes only and does not constitute legal tax advice. Advanced Tax Solutions is not liable or responsible for any damages resulting from or related to your use of this information. It is your responsibility to refer to official IRS documentation for information regarding any tax laws or tax information shown here.
