When are W2s Sent Out This Year? What About 1099s?

At the beginning of each calendar year, employers must provide annual income statements to employees and non-employee workers so they can prepare their own personal and business income tax returns. This may lead you to the questions, “What is the W-2 deadline?” and “When are W2s sent out by employers?” and “What is the penalty for an employer not sending a W-2?” Read on to answer these and other questions.

When is Form W-2 due?

If you don’t already know when employers send out W2s and 1099s, don’t panic. The W-2 deadline for providing this form to employees and the 1099 deadline for providing this form to independent contractors for 2025 is January 31, 2025.

Employers must provide each worker with:

• A Form W-2 (if classified as an employee) OR
• An IRS Form 1099-NEC (if an independent contractor and you paid them $600 or more in non-employee compensation during the year and only non-employee compensation – this form replaced the 1099-MISC as of 2020.)

Employers must also file form W-2 or 1099 along with their accompanying transmittals (Form W-3 for the W-2s and IRS Form 1096 for 1099s) to the appropriate federal agency – that is, the Social Security Administration for W-2 forms and the IRS for 1099 forms with non-employee compensation. Again, the deadline for when 1099s and W2 are sent out is January. 31, 2025.

Is the W2 deadline different than you remember?

After a massive W-2 phishing scam where scammers attempted to obtain personal information and file fraudulent tax returns with the compromised W-2 forms, the IRS moved up the filing date for annual wage and tax reports to combat potential fraud a few years ago. This provision is part of the Protecting Americans From Tax Hikes (PATH) Act.

The IRS also noted, “Having these W-2s and 1099s earlier will make it easier…to verify the legitimacy of tax returns and properly issue refunds to taxpayers eligible to receive them.”

Important state variations to know for W-2 and 1099 deadlines

The deadline for W2s and 1099s for state income taxes varies from state to state based on several factors, including whether the state levies a state income tax in the first place. Below is a chart with an example of possible dates. Visit your state’s Department of Treasury website to confirm the W2 deadline for this year and avoid late filing penalties.

What is the penalty for late filing W-2s

The most recently posted IRS penalties for delinquent annual income statements are as follows:

• $60 per Form W-2 if you correctly file within 30 days of the due date
• $130 per Form W-2 if you correctly file more than 30 days after the due date but by August 1
• $330 per Form W-2 if you file after August 1, don’t file corrections, or don’t file required Forms W-2
• $660 per Form W-2 if you intentionally neglect to file

The bottom line: Key deadlines for Forms 1099 and W-2

It is important to keep track of deadlines for W2s and 1099s. Staying on top of the 1099 and W-2 deadlines helps you avoid costly penalties. It will also ensure the people helping you do business, your employees and contractors, have the materials they need to finish their taxes on time. Don’t forget that these dates apply only to taxpayers who employ others.

Want to learn more? Talk to a certified small business tax pro to establish a plan to help you comply with W-2 deadlines and reach your business goals.

At Block Advisors, this comes standard to each and every client we serve. Get matched with a tax advisor now.

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