A change in federal law requires employers to file 2016 W-2 forms by Jan. 31, 2017 - regardless of whether the employer files paper or electronic W-2 forms. In the past, employers who filed paper forms had until the end of March to submit their forms to the Social Security Administration (SSA).
PATH Act of 2015
In recent years, identity thieves have taken advantage of the gap by filing billions of dollars in false tax returns using stolen names and Social Security Numbers. The Protecting Americans from Tax Hikes (PATH) Act of 2015 includes a provision to reduce tax refund fraud by requiring that all forms be submitted by the end of January. The shorter deadline gives the IRS access earlier to all employers' Form W-2 data. That will allow the agency more time to effectively validate federal income tax refund claims, it says.
The new deadline also applies to 2016 and future Forms 1099-MISC for non-employee compensation (Forms 1099-MISC with Box 7 entries). The change has no impact on state filing deadlines.
End-of-Year Checklist
These changes may require adjustments to year-end Accounts Payable and Payroll processes such as:
- Confirming that you have the current version of necessary forms. The IRS posted some 2016 forms for informational purposes on its website before the end of 2015. Those forms have since been revised.
- Reviewing existing year-end checklists to ensure internal deadlines are updated as needed.
- Comparing Payroll reports and Form 941 reports for the first three quarters of 2016 now to find and address any discrepancies.
