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Commentary

8.3.1 Exceptions to the W-2 penalty

United States

Employers have an annual obligation to file Form W-2 with the Social Security Administration, for each employee that was paid wages during the tax year. The employer must also provide a copy of Form W-2 to the employee.

An employer who fails to file a correct Form W-2 by the due date, and cannot show reasonable cause, may be subject to a penalty as provided under Internal Revenue Code, §6721. The W-2 penalty applies for employers who:

  1. Ìý

    •ÌýÌýÌýÌý fail to file timely

  2. Ìý

    •ÌýÌýÌýÌý fail to include all information required to be shown on Form W-2

  3. Ìý

    •ÌýÌýÌýÌý include incorrect information on Form W-2

  4. Ìý

    •ÌýÌýÌýÌý file on paper forms when required to e-file

  5. Ìý

    •ÌýÌýÌýÌý report an incorrect TIN

  6. Ìý

    •ÌýÌýÌýÌý fail to report a TIN, or

  7. Ìý

    •ÌýÌýÌýÌý fail to file paper Form W-2 that are machine-readable

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