Tax season is almost here, so it’s best to go ahead and prepare to file your returns, especially as a small business owner. If you run a business with employees then not only are you responsible for your W-2 state filings for your business, but you’re responsible for filing for your employees and issuing them copies of their W-2s.
If you miss the W-2 deadline you will have major penalties to face. Plus, this form is more in-depth than you think. You are actually required to file form W-2 on a federal level and with your state. To make matter more intense, each state has their own filing requirements, but luckily TaxBandits has all of the federal and state information to help you file by the deadline.
Filing Your W-2 State Filings with TaxBandits
Form W-2 is the annual statement that employers are required to file with the Social Security Administration (SSA). Employers are also responsible for issuing copies of Form W-2 to each of your employees.
The purpose of Form W-2 is used to report salary, income with social security, income, or Medicare tax withheld, and any compensations offered during the tax year. Employees need this information to complete their personal tax returns, which is why it’s so important to make sure your employees receive their copies by the deadline.
Form W-2 is due federally and with your state and even though each state has their own rules and regulations for filing, TaxBandits makes it incredibly easy to comply with the IRS. We provide all of the state filing information you need, as well as the required state transmittal forms.
Let’s check out a few of the ways states are different. Florida doesn’t require Form W-2 to be filed, while Alabama requires you file Form W-2 and Form W-2c even if no taxes were withheld. Also, Oregon requires you to complete Annual Withholding Tax Reconciliation Form OR-WR, while Montana requires you to complete Form MW-3. Check out what your state requires here.
If you fail to file Form W-2 by the deadline you will receive a $30 penalty per W-2 form. Then after 30 days, the penalty will rise to $60 per form with a maximum fine of $500 or $200 for small business owners.
Then if you don’t file by August 1st you will owe $100 per form and small businesses will be charged $500 and other businesses will be charged $1.500. A small business is one with $5 million or less in gross receipts for the past 3 most recent tax years.
To quickly file Form W-2 federally and with your state head to TaxBandits, the market leading small business tax solution. All you have to do is follow our step-by-step e-filing guide to quickly and accurately complete your form and transmit it directly to the IRS. We will even mail hard copies of your return to each of your employees! E-filing taxes has never been this easy.
Contact The Bandits
If you need any assistance while e-filing Form W-2, contact our dedicated, US-based TaxBandits support team. We’re available over the phone Monday – Friday from 9 AM to 6 PM EST at 704.684.4751. We also offer live chat and 24/7 email support at support@TaxBandits.com.