Wages

WHO MUST REPORT

If you have any employee (including yourself if your business is incorporated), you must report annual compensation and benefits to the employee and to the Social Security Administration.

File Form W-2, Wage and Tax Statement, with the Social Security Administration and furnish a copy to the employee. Also file Form W-3, Transmittal of Income and Tax Statement, with the Social Security Administration. Large employers (those filing 250 or more W-2 forms) must file electronically. Smaller employers can continue to file paper forms, but are encouraged to file electronically through an extended filing deadline.

NOTE
For the 2012 tax year, large employers will have to include on employee W-2 forms the value of health insurance benefits, whether paid for by the employer, the employee, or a combination of both. Small employers are exempt at this time.

WHEN TO REPORT

Different deadlines apply to different parties:

  • Employees. Furnish the form to them by January 31 of the year following the year in which the wages were paid (whether you furnish the Form W-2 by paper or electronically).
  • Social Security Administration. File the forms by February 28 (March 31 if filing electronically).

You can request additional time to file with the Social Security Administration by sending Form 8809, Request for Extension of Time to File Information Returns, to gain an additional 30 days to file. But you must still furnish the form to employees by the regular deadline; there ...

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