With the 2025 tax season around the corner, the Internal Revenue Service (IRS) has announced an important deadline: All employers must file Form W-2 by January 31, 2025. This deadline is for sending W-2s to both employees and the Social Security Administration (SSA).
Missing this deadline can result in hefty penalties—up to $630 per form—and might even delay employees from filing their taxes on time. Here’s everything you need to know to stay compliant and avoid issues.
What Is Form W-2 and Why Is It Important?
Form W-2 is a tax form that shows how much money an employee earned during the year and how much tax was withheld from their pay. It includes:
- Wages
- Social Security and Medicare tax withheld
- Federal income tax withheld
This form is important because:
- Employees need it to file their income tax returns
- The IRS uses it to verify income and detect fraud
- The SSA uses it to update your earnings records
W-2 Filing Deadline: Key Information
| Topic | Details |
|---|---|
| W-2 Filing Deadline | January 31, 2025 |
| Who Must File | All employers who paid wages |
| Submission Methods | Electronic (preferred) or mail |
| Late Filing Penalty | Up to $630 per form |
| IRS Resource | irs.gov |
Step-by-Step: How to File Form W-2 Correctly
1. Gather Employee Information
- Full name and address
- Social Security number (SSN)
- Total wages and compensation
- All taxes withheld
- Employer Identification Number (EIN)
2. Fill Out Forms W-2 and W-3
- Form W-2: One for each employee
- Form W-3: A summary form sent to the SSA with W-2s
3. Distribute Copies
- Copy B, C, and 2: Send to employees
- Copy A: Submit to SSA
- Copy D: Keep for employer records
4. Choose a Filing Method
Electronic Filing (Preferred):
- Required if filing 10 or more W-2s (unless exempt)
- Use the SSA’s Business Services Online (BSO) portal
- Fast, secure, and less chance of errors
Paper Filing:
- Must include typed (not handwritten) W-2s and Form W-3
- Mail to the correct SSA address
5. Send W-2s to Employees
Employers must give employees their W-2 copies by January 31, 2025. This can be done via mail or electronically (with employee consent).
Avoid These Common Mistakes
- Missing the deadline – Can lead to fines of $60 to $630 per W-2
- Wrong names or SSNs – Causes delays and IRS issues
- Forgetting non-cash compensation – Include bonuses, stock options, and perks
- Not e-filing when required – If filing 10+ W-2s, you must file online, unless exempt