So, we are on the brink of the January 31st deadline. Are you so far from completing your forms that you are considering just filing your W-2’s late? Don’t give up, there is still time, just not very much of it. Before you decide to go rogue and defy the SSA, take these penalties into consideration.
What Will The SSA Penalize Me For?
The bottom line is that the SSA wants you to file perfect forms, if you don’t they will penalize you! Here are a few of the reasons that you will receive a penalty…
Late Fling!!! Make sure you file by January 31, 2020!
Failure to include all of the required information.
You filed paper forms when you were supposed to e-file.
*Remember, if you have more than 250 employees, you must file electronically.
You filed with incorrect information.
You reported an incorrect TIN.
You forgot to include a TIN.
Your paper W-2 Forms were not machine readable, the SSA doesn’t want sloppy forms.
How High Are These Penalties?
The size of your penalty will depend on when you file your correct W-2 Forms. The penalties will obviously get larger, the longer you wait to file. The penalties are adjusted each year for inflation, which basically means they will increase each year. Based on tax year 2018, here is what you can expect…
If you file within thirty days after the deadline passes, you will be charged about $50 per return.
If you file in the time period between 31 days after the deadline and August 1, 2020, the penalty will double. You will now be penalized about $110 per form.
When you file your W-2’s later than August 1, 2020. The penalties are going to be exponentially higher, now you will be charged about $270 per return.
If you intentionally disregard your filing requirements and never submit W-2’s you will be charged around $550 per return! Depending on the number of employees you have, this fee can be astronomical! TaxBandits Can Help You Prevent Penalties.
TaxBandits Can Help You Prevent Penalties
The experts at TaxBandits understand that you want to spend as little time as possible filing tax returns and get back to running your business! Our interview style process is quick and easy. We also do Business Rule Validations to ensure error free filing. You don’t have to be a tax preparer to master your Form W-2’s…. just e-file with TaxBandits! We can handle all of your print and postal mailings when it comes to recipient copies!