Rules for Distributing W-2s

It’s usually during this month that employers have some employees asking about when they will receive their W-2s. Here is a brief overview of the rules for distributing W-2s to your employees.

Employers must report all wages earned by employees to the Social Security Administration (SSA) at the end of each year (minimum earnings requirement is $600). This is done using the W-2 along with a summarized form known as the W-3. All employees who earned over $600 during the year must also get a copy of the W-2. There are no exceptions to either of these rules – all employers must submit the W-2, and all employees must receive a copy.

Employees must receive their copy of the W-2 by Monday, February 1, 2016. Employers must file copies of the W-2s with the SSA by Tuesday, March 1, 2016 (deadline is March 31, 2016 if you are filing electronically).

Filing electronically is becoming the norm, and the good news is that it’s free, and you have more time to file if doing so online. The SSA has three ways to file electronically – see them here. If you still prefer to file paper versions of your W-2s, you can view the SSA’s instructions on how to do so here.

A few tips to avoid any delays or errors with your W-2 filing and distribution:

1. Check that all employee names are spelled correctly, and that all Social Security numbers are accurate. Any discrepancies between your records and the SSA’s records could cause issues.
2. Make sure any employee name changes (via marriage, divorce, etc.) are consistent with what’s on file with the SSA. If an employee has a new last name but has not changed it with the SSA yet, continue to use the old last name until the employee gets an updated SSA card with the new name.
3. If you have concerns about employee records not matching with the SSA’s records, you can use their free online verification service to match names to SS numbers before you file your W-2s.

Want to save even more time and hassle? Become a GTM Payroll Services client, and we’ll take all the work out of the W-2 process – we will prepare your employees’ W-2s and send to you for distribution, and we’ll file copies of your W-2s and your W-3 with the SSA, all in a timely and accurate manner.

Contact us at (518) 373-4111 to learn more.