Federal W-2 Information Returns
Questions and Answers

When and Where to File

Q.  What is the due date for filing tax year 2007 W‑2’s and where do I send them?

A.  Electronic Filing — March 31, 2008   Electronic filing is preferred for both large and small filers.  The electronic filing due date is later each year than the paper filing postmark deadline.  File electronic W-2’s by March 31, 2008.  Remember to print the electronic receipt that appears on the screen after you submit the file.  It contains the filing date and should be saved as proof of filing.  For more information, see “Electronic Filing” below and “Electronically File Your W‑2’s” at www.socialsecurity.gov/employer.

Paper Forms — February 29, 2008  W‑2 reports submitted on paper forms must be postmarked on or before the last day in February each year.  (If you use a private courier instead of U.S. Postal Service, go to the IRS web site at www.irs.gov and search for “designated private delivery service.”)

• Fill in and enclose a Form W‑3 transmittal with Copy A of the W‑2’s.  Do not print blank W‑2/W‑3 paper forms from a web site and fill them in.  You may order free W‑2/W‑3 forms and instructions from the Internal Revenue Service (IRS).  Telephone (800) 829‑3676 toll‑free for federal tax forms and ask for Publication 2184, Alternative Ways To Get Employment Tax Forms and Instructions and the number of W‑2’s you need.  (If you print on "substitute" forms you purchased, or you used vendor software to print filled in W-2's on blank paper, make sure the vendor’s forms or software have been approved by Social Security.  Also make sure the correct tax year appears on the finished forms.)
• Mail paper forms W‑3 and W‑2’s together to the address on the W‑3:  SSA Data Operations Center, Wilkes‑Barre, PA 18769‑0001 (or ‑0002 for certified mail).

Electronic Filing Waiver Requests

Q.  I know I will have over 249 W‑2’s to report this year, but I am going to have a serious problem if I have to convert to e-file reporting.  Will I be penalized if I report on paper?

A.  The Revenue Reconciliation Act of 1989 requires employers with 250 or more W‑2’s to file electronically instead of on paper forms.  You can request an extension of time (see below) if you need more time to convert. There is also a provision for waiving the requirement for one year, allowing you to mail a high volume of paper Forms W‑2 and avoid a “failure to file” penalty.  See IRS Form 8508, Request for Waiver From Filing Information Returns Electronically/ Magnetically at www.irs.gov or order by phone from the (800) 829‑3676 IRS toll‑free forms number.  If 2007 is the first year your company will file 250 or more W‑2’s, be sure to mention that on Form 8508.  You can usually delay converting to electronic filing for one year in that situation.  IMPORTANT:  Waiver requests are not granted automatically.  You must allow time (generally 30 days) for IRS to review and respond to a waiver request.  Contact the IRS Enterprise Computing Center – Martinsburg at (866) 455‑7438 toll-free if you have questions about Form 8508 or time they need to process it.

Extension of Time

Q.  How can I get an extension of time to switch to electronic filing and to reconcile our W‑2 totals with our quarterly Form 941 totals from 2007 before we file?

A. Completing Form 8809, Request for Extension of Time to File Information Returns through the Internal Revenue Service "Filing Information Returns Electronically" (FIRE) site at http://fire.irs.gov is the best way to request a 30-day filing extension. Paper forms are discouraged but are available at www.irs.gov or from the IRS toll‑free (800) 829‑3676 forms number. Requests must be submitted electronically or postmarked on or before the paper Form W‑2 due date above.

User Identification Number (User ID) Required for Electronic W-2/W-2c Filing and Other Business Services Online Features

Q.  Who needs a User ID for W-2 filing and how do I get one?

A.  A User ID issued by the Social Security Administration is a personal ID number, not a company ID.  Every person who files W-2’s electronically must have her/his own User ID.  Obtaining a User ID is a one-time, easy process, but must be done before the person can file electronically.  Select the “Business Services Online” link at www.socialsecurity.gov/employer and fill in the online registration screens.  (Select " Tutorial” on the left side of your screen, then choose “Registering” from the Table of Contents if you want to read more before you register.)   IMPORTANT:  After you obtain a User ID, log in at least once each year and change your personal password to keep your User ID active.

Electronic W‑2 Filing

Q.  How do I submit my W‑2 report electronically instead of mailing paper forms or a diskette?

A.  Internet filing is preferred for both large and small filers. For more information, go to www.socialsecurity.gov/employer then select "First Time Filers" under "Before You File".  Briefly:

• Paper Filers – If you have only 20 or fewer W‑2’s to file, you don’t need special payroll/tax software.  You can fill in W‑2’s easily on Social Security’s “W‑2 Online” service.  First, get a User ID (see above), then go back to “Business Services Online” to use our fast, free, and secure fill‑in W‑3 and W‑2 Forms when you are ready to file.  (If you have over 20 W‑2’s, we suggest you use payroll/tax software to prepare a file to upload instead.  See "How to File W-2's" and "Vendor List" on the left side of your screen at www.socialsecurity.gov/employer.)
• Diskette Filers: Diskettes are no longer accepted for W‑2 filing.  Switching to e‑file is simple, because the payroll/tax software used for diskette and e-file are the same.  Simply save your W‑2 file on your hard drive or other backup media, then upload it over the Internet through Social Security’s Business Services Online site instead of mailing it.  First go to www.socialsecurity.gov/employer and select the "Business Services Online" link. Log in with your User ID and password and choose “Submit a W‑2 Wage File” to upload your file instead of mailing it.  (IMPORTANT NOTE:  If your W-2 report would require more than one diskette, save it on your hard drive, a compact disc, or other local media instead (not on diskettes) and zip the file before uploading it. Also keep a backup copy on CD or other media.)

Filing More Than One W-2 Report

Q.  The payroll service we use files W‑2’s for us electronically.  We also have a few internal W‑2’s that our payroll service does not handle (our executive staff payroll and mileage reimbursements from our Accounts Payable system).  Do I have to file those W‑2’s on a magnetic tape/diskette or electronically too?

A.  Only if you have 250 or more.  The part of the law that requires magnetic media reports states you can file as many as 249 W‑2’s on paper if they can’t be included on the magnetic media or electronic report with the other W‑2’s.  That is to allow for situations like yours, as well as for companies that have fewer than 250 W‑2’s in total each year and don’t use a payroll service.  (Reminder:  For 20 or fewer W‑2’s, you can use SSA’s W‑2 Online service instead of filing paper forms.) DO NOT MAIL A W‑3 OR COPY A OF PAPER W-2’s TO SOCIAL SECURITY IF IT DUPLICATES WHAT WAS FILED ELECTRONICALLY!

Third‑Party Sick Pay

Q.  Our insurance company told me I have to make W‑2’s for the employees who received sick pay they paid for my company.  What should I do?

A.  Follow instructions in Internal Revenue Service Publication 15‑A, Employer’s Supplemental Tax Guide.  You can submit employee third‑party sick pay W‑2’s separately from your company’s other W‑2’s.  (Reminder:  For 20 or fewer W‑2’s, you can use SSA’s W‑2 Online service.)