New Law Changes 2016 Form W-2 Electronic Filing Deadlines…
Less Time for Corrections and Third Party Sick Benefit W-2s!

The W-2 electronic filing deadline has changed and your business has less time to correct W-2 errors, as well as issue sick benefit W-2s. This is due to The Protecting Americans from Tax Hikes (PATH) Act of 2015 , which was passed by Congress and signed by President Obama in December, 2015.  Now the Social Security Administration (SSA) electronic filing deadline is the same as the deadline to provide employees their W-2s - January 31.

Previously the electronic W-2 filing deadline was March 31 for the preceding year, which created a window of time to correct W-2s that were given to employees before the January 31 deadline.  It also allowed time to produce “sick-benefit” W-2s prior to the electronic filing deadline.

In light of these changes, businesses should not wait to receive their final reconciliation from insurance carriers to communicate sick benefits to Primepoint.

Primepoint customers should note that most states have changed their W-2 electronic filing deadline to January 31, therefore Primepoint will submit electronic W-2 files to all states by January 31.

Corrections can be made with form W-2c after the filing deadlines, but those corrections may result in additional Primepoint processing fees, as well as penalties from the government.

However, in light of the shorter W-2 deadline, you’ll be glad to know the PATH Act contains a safe harbor from penalties if errors are not significant. Starting with the 2016 forms, you’ll find relief for:

  • withholding errors up to $25, and
  • other errors up to $100.