The PATH Act, which went into effect in December, 2015, has brought some changes to the filing deadlines for W-2s, W-3s, and certain 1099-Misc forms for the 2015 tax year.
All copies of W-2s and W-3s are now due by January 31, 2017. While the wage earner's copy was due by January 31 in previous years, the employer could wait to file the SSA copies until February 28 or even March 31. Effective now, all copies are due by January 31.
Similarly, the deadlines for filing certain 1099-Misc forms also have changed. If the payer is reporting payment in Box 7 of the 1099-Misc (Non-employee compensation) then all copies of the 1099 are due to both the recipient and the IRS by January 31. Again, the recipient copy has always been due by January 31, but the IRS deadline has previously been the end of February or end of March depending on the nature of the filing. The deadlines for other 1099-Misc (with no reporting in Box 7) remain February 28 if in electronic form or March 31 if in paper form.
Increased Penalties for Late Filing of W-2, W-3 and 1099-Misc
Along with the change in due dates, the IRS has increased the penalties for late filing and failure to file W-2s, W-3s and 1099-Misc. The penalties step up in cost the later the returns are filed.
IRS Guidance
Please use this link to read guidance directly from the IRS on these issues:
https://www.irs.gov/government-entities/federal-state-local-governments/increase-in-information-return-penalties-2
https://www.irs.gov/government-entities/federal-state-local-governments/increase-in-information-return-penalties-2
As always, we strongly recommend you consult your payroll advisor for assistance with these and all other payroll tax issues.
If we can be of assistance, please contact us at (919) 814-4299.