Accelerated filing deadlines to report non-employee compensationwritten by Olivia Tinkler

As a result of the Protecting Americans from Tax Hikes Act (PATH Act of 2015), the filing due date for Form W-2, Wage and Tax Statement, Form W-3, Transmittal of Wage and Tax Statements, and any returns or statements required by the IRS to report nonemployee compensation has been set for January 31.

The prior due date related to the previously mentioned forms was set for the end of February with an available extension request for March 31 for those forms filed electronically. This change in deadline is effective for returns and statements filed in 2017. In additional to this new due date, forms filed electronically will no longer qualify for the extended due date of March 31.

Employers are required to file a Form W-2 for each employee involved in said companies trade or business for which the employee receives wages for related services; this includes non-cash payments. If a business owner pays $600 or more for services provided by a vendor they are required to issue a Form 1099 Miscellaneous to those vendors.

This accelerated filing deadline matches the due date for providing wage statements to employees and written statements to payees receiving non-employee compensation.

Please be advised that employers who fail to file a correct Form W-2 by the due date may be subject to a penalty. Higher penalties apply to returns required to be filed after December 31, 2016, and are indexed for inflation. It is also important to note that if a Form W-2 is filed with incorrect dollar amounts it may be eligible for a new safe harbor for certain minor errors.

If you have any questions please feel to call the office at (417)881-0145.