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 earnings 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 can lead to important penalties and authorized repercussions.
The penalties for not offering a W-2 type differ relying on the particular circumstances and the variety of staff affected. The Inner Income Service (IRS) might 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 might pursue authorized motion in opposition to employers who willfully fail to supply W-2 kinds, which might end in felony costs and additional penalties.
