Form W-2 Changes for the 2020 Tax Year
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E-file Form W-2 NowChanges in Form W-2 for the 2020 Tax Year
Updated on December 24, 2020 - 10:30 AM by Admin, ExpressEfile Team
Form W-2 is filed by employers in the United States every year for their employees. Employers have to keep an eye out for the updates to the form every time before they file the return as incorrect filing may lead to penalties.
Read on to learn more about Form W-2 changes made by the SSA for the 2020 tax year.
1. What is Form W-2?
Form W-2 is filed to report wages paid to employees and taxes withheld from employee paychecks. Employers will send the copies of Form W-2 to employees.
2. Changes in Form W-2 for 2020 tax year
Before filing Form W-2 for your employees, there are a few changes that you should be aware of. Below are the changes in Form W-2 for 2020 tax year:
Boxes A through F: Use the lettered boxes on Form W-2 to enter both employer and employee information.
- Deadline for filing Form W-2 for the 2020 tax year is February 01, 2021, as the regular deadline falls on a weekend.
- Employers can truncate or mask the SSNs on employee copies of Form W-2.
- For 2020, the social security wage base is $137,700, and the social security tax withheld amount should not exceed $8,537.40 ($137,700 × 6.2%).
- The 2020 Social Security and Medicare coverage threshold for Household wages is now $2,200 (for 2019, it was $2,100).
- Civilian spouses of servicemembers can elect to use the same residence of the servicemember for taxation purposes.
- The penalty rates for failure to file or furnish penalties and intentional disregard of filing and payee statement have increased. These higher penalty rates will apply to returns filed after December 31, 2020.
With ExpressEfile, you can e-file Form W-2 with new changes easily and securely. It’ll take only a few minutes to complete the whole process.
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3. Deadline to file Form W-2
Form W-2 must be filed every year on or before January 31st. The deadline to furnish employee copies is also January 31st. If the W-2 deadline falls on a weekend or a federal holiday, the form can be filed on the next business day.
For the 2020 tax year, the deadline to file Form W-2 is February 01, 2021.
4. E-File Form W-2 for the 2020 tax year
ExpressEfile supports the most up-to-date Form W-2 with the changes mentioned above. Choose to e-file Form W-2 and avail the best benefits like error-free filing at the lowest price, $1.49/form. Also, you can mail your employee copies using our postal mailing option. It just costs $2.99/form to e-file W2 online and mail employee copies.
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