As part of the new budget deal just signed into law, the IRS and Social Security Administration will now require all businesses to submit the employer copies of the W-2 and the W-3 to the SSA by Jan. 31. While the employee copy still needs to be issued by Jan. 31, previous required procedures allowed businesses to file employer paper forms by Feb. 28 and electronic forms by March 31.
IRS fraudulent tax refunds totaled close to $3 billion in 2014. The administration hopes that this new deadline will allow the IRS more time to verify reported income before it issues taxpayer refunds as indicated on their tax return thus reducing fraudulent tax refunds. Under the old system, according to the IRS and the SSA, administrators did not get around to finish reviewing W-2 reported income and comparing it to individual tax returns until sometime in July.
The Advi$or wonders why the IRS did not just simply take more time to review returns and W-2’s before it issued refunds. We also advise that this new system will not allow time for employees and employers to review W-2’s for errors and omissions before final copies are sent into the SSA. This review period was beneficial in that it increased the likely hood that employees received accurate W-2’s and, just as importantly, the SSA received accurate W-2/3 reports.
The new filing rule will go into effect for 2016 W-2’s.
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Time & Pay is a professional payroll service provider located in Johnson City, TN. We service businesses of all sizes and types throughout the United States. Founded in 1992, Time & Pay provides businesses with complete payroll services , guaranteed payroll tax compliance, automated time and attendance systems and services, pay-as-you-go worker’s comp, human resource management systems and services, and more. We provide our customers with the cost effective tools you need to better manage your payroll, your employees and your business. Time & Pay’s services guarantee you will save money, time and aggravation and we back them up with the customer service you expect and deserve. Contact Us today to learn why business owners throughout the country are saying:
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