Every employer ought to provide the employees with W-2 forms and the forms in question should be filled correctly. On the other hand, the employees should use W-2 forms to file their returns. As an employer, you are supposed to supply these forms to the employees before every end of January to avoid a fine. Any employer who does not supply W-2 forms to the employees by the said date tend to be subject to a penalty.
You would also need to have mailed W-2 forms by January 31st to the IRS. It tends to be possible to request for an extension by writing from IRS and also remember explaining why you are unable to supply W-2 forms before deadline. It may be necessary to remember to send W-3 forms along with W-2 forms something which ought to be done by February 29th. To people eligible to e file returns, they tend to have a deadline of April second.
You would also need to remember of penalties that come with late filing of returns. In a case where you do not submit W-2 forms on time, you may be subjected to a penalty of $50 for every W-2 form but you would need to file the correct form within 30 days. It may also be essential to note that you attract a fine of $536,000 per year and $187,500 for small businesses. You also tend to be exposed to a penalty of $260 per W-2 form and $1,609,000 and $536,000 for small businesses in a case where you do not file after august 1st. In a case where you do not file your returns after August 1, you tend to be exposed to a fine of $260 per W-2, $1,072,500 or $3,218,500 for small businesses per year. Any business with a gross receipts of up to $5 million for the three most recent tax years tend to be classified as a small business in three tax years.
It may also be essential to note that any incomplete form or incorrect form comes with a penalty and hence the need to fill them correctly. In the same manner, illegible forms tend to also attract fines and hence to make sure that all W-2 forms are legible. Businesses and employers filing more than 250 W-2 forms would also need to remember that they are eligible to e file returns and hence paper W-2 forms would lead to a penalty. In a case where you make an error on W-2, you may make corrections on a new form and notify IRS of the revision.