It is the responsibility of every employer to provide the employees with W-2 forms which should be followed by correct filing. On the other hand, the employees tend to use the forms in question to file their tax returns. Employers are required to supply W-2 forms to their employees by January 31 to avoid a fine. In a case where as an employer you do not supply W-2 forms to the employees by January 31st, you tend to be subject to a fine.
You would also need to have mailed W-2 forms by January 31st to the IRS. However, you may need to know that you can ask for an extension in writing from IRS but the extension in question would need to explain why you were not able to submit the forms by the deadline. You would also need to note that W-2 forms ought to be accompanied by W-3 forms and should be submitted by latest February 29. In a case where you are eligible for e file returns, you need to note that you have a deadline of April 2.
It would be critical to know of financial penalties that come with late or not 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. You also, tend to be exposed to a fine of up to $536,000 and a maximum of $187,500 for small businesses. In a case where you file after between 30days after due date and august first, you tend to be exposed to a penalty of $100 per W-2 form and the fine tends to increase to $1,609,000 and $536,000 for small businesses. Failure to file W-2 forms after August 1st tend to come with a fine of $260 for every form $1,609,000 and $536,000 for small ventures. 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.
You may also need to know of penalties that tend to come with filing incomplete and incorrect W-2 forms. You may also be fined in a case where the forms you file are illegible. 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.