Tax Accounting Payroll Advisory             Our Offices

View Padgett President Roger Harris' congressional testimony on the impact of the Corporate Transparency Act and the BOI reporting requirements here.

Find an office
Skip to main content

The Future Of Filing: Upcoming Changes To W-2 Requirements

Over the next two years, the IRS is implementing some dramatic changes to current filing requirements for Form W-2. The IRS will soon require small businesses with 10 or more employees to change the way they file these forms.    

If you have employees, you know how important correctly filing Form W-2 — also known as the “Wage and Tax Statement” — is. As the name would imply, Form W-2 acts as a record of wages paid and taxes withheld from employees. Currently, these forms can be filed on paper or online, though e-filing is required for employers with over 250 employees.   

Small business shifting online 

Especially during and after the COVID-19 pandemic, we’re living in an increasingly online​ world. E-filing is currently recommended for all employers but may soon become a requirement for smaller businesses. The Taxpayer First Act, enacted July 1, 2019, allowed the IRS to reduce the 250-return requirement for future information returns.    

Final regulations are pending, but beginning with 2022 W-2s, if you send 100 or more forms to the Social Security Administration (SSA), you’ll now have to file them electronically. In 2023, that number will drop again to 10 or more.  

The SSA’s Business Services Online website currently has two options for submitting your W-2s: create them online or upload them all manually using the “file upload” option. If you’re required to e-file your W-2 forms and don’t, you could end up with a penalty, so it’s important to be certain where your business falls under the new regulations. If you require an exemption, you can try requesting a waiver from the requirement to e-file. But be aware that it’s unlikely that one will be granted due to the strict hardship requirements.   

Helping you navigate the future 

We know change can be difficult, and in an online world, change happens fast. Missing important changes like these can lead to penalties and complications. The good news is you don’t have to face these looming challenges alone. A full-service payroll partner like Padgett can help make sure you never miss an update. We’ll help you get it right the first time, so you can focus on what you do best: running your business.     

If you have questions about future IRS requirements or need a partner to help your small business stay on top of new changes as they happen, don’t hesitate to reach out to a Padgett office near you today. 

We encourage you to contact us with any questions.

This field is for validation purposes and should be left unchanged.