New Filing Deadline for Employer W-2/1099-MISC FILING

Post by: Sarah McCraine

In an effort to reduce tax payer fraud, changes have been made to deadlines that will affect payroll filings starting in 2017.  The Protecting Americans from Tax Hikes (PATH) Act, passed in 2015, changed the deadline for reporting wages and nonemployee compensation. Previously, businesses & employers were required to provide recipient copies of forms 1099-MISC and W-2 by January 31st. The corresponding filing copies along with forms 1096 and W-3 were due to the IRS/Social Security Administration by February 28th (or March 31st if electronically filing).

Now, under the PATH Act, the filing deadline for all forms is January 31st.  In other words, the recipient copies are still due January 31st and the filing forms for IRS/Social Security Administration are ALSO due on January 31st.

Along with new filing deadlines the IRS has increased penalties for failure to comply with the following:

  • Failing to file the correct form by the given due date
  • Intentional disregard of filing requirements
  • Failure to provide W-2s to employees
  • Intentional disregard of payee statements requirements

The PATH Act did bring relief for correction of errors with a de Minimis safe harbor provision. Beginning in 2017 penalties will not be assessed for withholding errors up to $25 and other errors up to $100. If errors fall within these amounts, employers will not be required to submit a correct return, although an employee can request a corrected form.

If you have questions on these changes and their impact on your filing requirements, please consult your tax advisor.

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