What is the deadline for businesses to send W2s and 1099s to employees, contractors, and the federal government?
You must prepare, distribute and file W2 forms by January 31 each year if your business employs workers classified as employees who earned wages during the prior tax year for which income taxes, Social Security tax, or Medicare tax were withheld, or for whom income taxes would have been withheld had the employee not claimed a withholding exemption or had they claimed no more than one withholding allowance.
For workers classified as independent contractors who earned at least $600 during the year for services provided, business owners must instead file the appropriate 1099 form with the IRS and distribute the form to the worker. In most cases, form 1099-NEC (Nonemployee Compensation) is used instead of Form 1099-MISC.
What is the deadline for employers to send federal unemployment tax reports to the IRS?
Most small businesses with non-household or agricultural employees are required to pay federal and state unemployment taxes. If your business paid wages of $1,500 or more to employees in any calendar quarter or had one or more employees for some part of a day in 20 or more different weeks during the year, you must file IRS Form 940, Employer's Federal Unemployment Tax (FUTA) Return.
The filing deadline for federal unemployment tax reports is generally January 31 each year. However, if all FUTA tax is paid when due during the calendar year, the deadline may be extended to February 10. Employers with a federal unemployment tax liability of $500 or more for the year must make at least one quarterly deposit.
Can I file unemployment tax reports, W2s, and 1099s online?
Yes. Employers are encouraged to file their W2s, 1099s, and unemployment tax reports electronically.
- W-2s: File electronically using the Social Security Administration’s Business Services Online (BSO).
- 1099s: File electronically using the IRS Filing Information Returns Electronically (FIRE) system.
- Form 940: Employers can e-file and make payments using the Electronic Federal Tax Payment System (EFTPS).
What are the penalties for filing late, and are there exceptions to the deadline?
The IRS uses wage and income information submitted by employers using W-2s and 1099s to verify the accuracy of income information reported by employees and independent contractors. Because workers also depend on these reports, there are generally no automatic filing extensions available for W-2 or 1099 forms, though the IRS may grant an extension in specific circumstances.
Financial penalties for small businesses filing after the deadline can add up quickly. Penalties increase the longer a return is late and may also include interest on unpaid taxes for late-filed federal unemployment reports.
How do I plan now to meet all my filing deadlines?
Putting off your tax reporting and filing obligations until the last minute can result in errors or unexpected delays that may cost your business time and money. Entrepreneurs and small business owners can avoid this by being proactive:
- Verify employees’ names, addresses, Social Security numbers, and Taxpayer Identification numbers.
- Confirm your company’s information on file with the IRS and the Social Security Administration is accurate.
- Create a filing calendar to keep track of due dates and deposits.
Tax matters can be complex. Getting professional guidance can help your business meet its obligations to its workers and the federal government. If you have questions, reach out to a Legal Pro for guidance.
Please note: This page offers general legal information, not but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.
