Avoid Penalties: February 1 is the Deadline for Employers to File Income Statements | The State
The income statement must be filed on time and without errors to avoid penalties.
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Remember that the following month employers must file Form W-2 and other income statements by Monday, 1ro February 2021. This is also the date that Forms W-2 must be turned in to your employees.
By law, employers must submit copies of their Form W-2, Wage and Tax Statement, and the Form W-3, Transmission of Wage and Tax Vouchers, with the Social Security Administration by January 31st. However, this year, January 31 falls on a Sunday, which moves the deadline to the next business day, which is Monday, February 1.
He Form 1099-MISC, Miscellaneous Income and the Form 1099-NEC, Compensation to Persons Who Are Not Employees, must also be submitted by February 1, 2021.
To submit all documentation in order, employers must begin to verify or update their employees’ data such as:
- Names
- Addresses
- Social security numbers
- Taxpayer personal identification numbers
Remember that filing your income statements on time and without errors is beneficial for employers and the IRS, since, in this way, the employer avoids penalties and the IRS has time to verify what taxpayers report on their tax returns, which helps prevent fraud.
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