W2 Forms › Avoid Form W-2 Penalties for the 2025 Tax Year
IRS Form W-2 is an annual payroll report that shows the taxes withheld from an employee's paycheck for a specific tax year. Employers use it to file federal taxes.
As the deadline for Form W-2 approaches, all employers must file their employees' W-2s, along with W-3, the transmittal form, to the Social Security Administration (SSA) before the deadline.
Form W-2 must be distributed by the employer to the recipient on or before January 31st
Form W-2 must be mailed or E-Filed to the SSA on or before January 31st
Note: The deadline is typically the next business day if the deadline falls on a weekend or federal holiday.
Failing to file Form W-2 by the deadline or meeting the deadline but providing incorrect recipient information can result in IRS penalties ranging from $60 to $680, depending on how late the form is submitted.
The IRS has increased these amounts for the 2026 filing year.
$60 per form
up to$239,000 per year (smaller businesses)
$683,000 per year
$130 per form
up to$683,000 per year (smaller businesses)
$2,049,000 per year
$340 per form
up to$1,366,000 per year (smaller businesses)
$4,098,500 per year
$680 per form
no maximum penalty
W-2 penalties may be subject to the following:
Discover more about IRS penalties by visiting the penalties breakdown.
Purchasing any BoomTax package will give you everything you need to complete your filing.
This includes:
Import many companies in one spreadsheet to simplify data input.
We validate your data against hundreds of IRS rules.
No IRS registration or testing required.
Make as many changes as needed for free.
You can import your data as Excel, XML, or use files from popular payroll providers like QuickBooks, UKG, ADP, and many more.
We walk you through the process with no complicated jargon. You can also live chat with a real person as you work on your filing for hands-on help.
Once your data is loaded, you can e-file and distribute employee copies in minutes.
There is no additional fee for filing prior-year W-2 tax forms with BoomTax; you can e-file at the same affordable rate as current-year forms.
BoomTax is an IRS-approved e-file provider that supports electronic filing for various business tax forms, including Forms W-2, 1099 Forms, ACA Forms, and more.
Specializes in IRS compliance technology and building secure, efficient tax reporting solutions.
BoomTax and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors prior to engaging in any transaction.
