Penalty for Employer Not Sending W2 refers back to the authorized penalties confronted by employers who fail to supply their staff with a W-2 type, which is an important tax doc used to report wages and taxes withheld throughout a tax yr. The W-2 type is crucial for workers to file their private revenue taxes precisely and on time, and employers are legally obligated to supply this doc to their staff by January thirty first of the next yr. Failure to take action may end up in important penalties and authorized repercussions.
The penalties for not offering a W-2 type range relying on the precise circumstances and the variety of staff affected. The Inner Income Service (IRS) could impose financial fines starting from $50 to $250 per W-2 that’s not offered, with a most penalty of $3 million per yr. Moreover, the IRS could pursue authorized motion in opposition to employers who willfully fail to supply W-2 types, which might lead to legal costs and additional penalties.
