It can be hard to keep up with tax law changes while running a small business. Luckily, CSI Accounting & Payroll is on top of it! We'll help keep you informed about important details that may affect your business.
You may know that in July 2019, the Taxpayer First Act became law. Here are some updates that are coming in 2022 and 2023, if issued as formal regulation.
What is the Taxpayer First Act?
According to the Social Security Administration, "The Taxpayer First Act... requires more employers to file W-2s or W-2Cs electronically."
How can I file electronically?
- The SSA offers W2 Online, which is filled out directly on their website and looks just like paper W2s.
- If you use software to create your W-2s or W-2Cs in EFW2 format, you can use Wage File Upload on SSA’s Business Services Online. Read the tutorial here!
- A third party (like CSI Accounting & Payroll) can prepare your W-2s and send them to SSA electronically.
What are the future changes?
2021 wage reports are due by February 1st, 2022. According to the Social Security Administration, the following regulations are pending final approval by the IRS (dates shown may be subject to change at that time):
- By midnight on January 31, 2022, you must send in your W-2s electronically if you have 100 or more. This may affect small-to-medium-sized businesses.
- By midnight on January 31, 2023, you must send in your W-2s electronically if you have 10 or more. This change is likely to affect many small businesses.
What happens if I am supposed to file electronically, and I don't?
The IRS will penalize you. Until the above changes are finalized, the details of the penalty do not appear to be defined.
Ready to learn more?
For more information about the Taxpayer First Act, click here. At CSI Accounting & Payroll, clients love us for our ongoing efforts to inform them of events that may affect their businesses. Ready to have a conversation about how we might be right for you? Click the button below for a free consultation.