Brief Overview and References on
Where, When and How to File Federal W‑2 Information Returns

Q.  What is the filing “deadline” for employers to submit their tax year 2009 W‑2’s to SSA and where do I send them?

A.  The due date depends on how the W-2’s are filed.
Electronic Filing—March 31, 2010  Internet filing is required if an employer files 250 or more W-2’s, and is preferred and available for all employers, even if only 1 W-2 is filed.  The electronic filing due date is March 31 each year.  The receipt displayed on-screen after submitting an electronic W‑2 file shows the date you e-filed and should be printed and saved as proof of filing.  To learn more, see “Electronic W‑2 Filing” below and “First Time Filers” at www.socialsecurity.gov/employer.

Paper Forms—March 1, 2010  Up to 250 FormsW‑2 may be submitted on paper forms instead.  Paper reports 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 www.irs.gov and search for “designated private delivery service.”)

• Complete and enclose a Form W‑3 transmittal with Copy A of the W‑2’s.  You may view instructions and forms online from the Internal Revenue Service (IRS) online.  To order free forms, go to www.irs.gov/businesses and select “Online Ordering for Information Returns and Employer Returns.”

• If you use payroll/tax software that prints filled-in paper W-2/W-3 forms, contact the software vendor if you are unsure samples have been approved by Social Security.  Also make sure the correct tax year is printed on the forms before you mail them.
• If you purchase blank forms from a forms vendor, make sure the W-2 Copy A and W-3 comply with IRS Publication 1141 “substitute forms” instructions.  By law, paper Forms W‑2 and W‑3 must be machine readable!  Do not copy blank W‑2/W‑3 forms from a publication or print forms from a web site to fill in and mail to SSA.  Do not fill in official forms by hand.    (TIP:  Save time and money and file more accurately by using SSA’s Business Services Online W-2 fill-in forms instead for 20 or fewer W‑2’s.  See “Electronic W‑2 Filing below.)

• Mail the completed W‑3 and W‑2’s together to the address on the W‑3:
  SSA Data Operations Center, Wilkes‑Barre, PA 18769‑0001

Electronic Filing Waiver Requests
Q.  I know I’ll have over 249 W‑2’s to report by the end of this year, but I have a hardship and won’t be able to convert to e-file by the due date.  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 Copy A electronically instead of machine readable paper forms.  However, there is provision for waiving the requirement for one year to avoid a “failure to file” penalty if you must mail more than 250 paper Forms W‑2.  Complete and mail IRS Form 8508, Request for Waiver From Filing Information Returns Electronically.  See Tax Topic 803 and Form 8508 at www.irs.gov for how to submit your request.  If 2009 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, Information Reporting Program Customer Service Section at (866) 455‑7438 toll-free or by e-mail at mccirp@irs.gov if you have questions about the waiver request form or time they need to process a waiver request.

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 IRS Form 941, 943, or 944 totals before we file?

A.  Use Form 8809, Request for Extension of Time to File Information Returns to request a filing extension (normally 30 days).  Requests must be filed by the W‑2 due date above.  See Tax Topic 803 and Form 8809 at www.irs.gov for how to submit your request.

User ID Number for Business Services Online (BSO) Access

Q.  What is a User ID Number for W-2 electronic  filing and how do I get one?

A.  A User ID Number issued by the Social Security Administration is a personal ID, not a company ID.  Every person who intends to use Business Services Online must have her/his own User ID.  Registering for a User ID is a one-time, easy step, but it must be completed before a person can use BSO.  Select “Business Services Online” at www.socialsecurity.gov/employer.  At the “Welcome” screen, select “Tutorial,” if you wish, for step-by-step instructions, or select “Register” to enter a secure area and begin your registration.  Read all on-screen instructions carefully and double check all entries you make.  In some cases, you will be instructed to fax additional information SSA needs to complete your registration, so register before you expect to file your W‑2’s.

Electronic W‑2 Filing
Q.  How do I file my W‑2 report electronically instead of mailing paper forms W-2 and W-3?

A.  Internet filing is the best way for both large and small companies to file W-2’s.

• For 20 or Fewer W‑2’s – No payroll/tax software is needed to file up to 20 W‑2’s.  You can fill in W‑2’s screens easily with Social Security’s free, fast, and secure “W‑2 Online” feature.  First, get a User ID (see above).  Then, when you are ready to file, log in at Business Services Online with your User ID and password and follow the “W-2 Online” instructions.  When you’re done, the W-2’s are submitted to SSA electronically, and you print the employee copies plus a W-3 (for your records only, not to be mailed) on plain paper.
• From 1 to 1 million W-2’s – You can upload a file you created with a payroll/tax software program.  Contact the software vendor if you already use a program and ask if they support uploading an “EFW2” file to SSA.  If you don’t already have software, see the “Vendor List” at www.socialsecurity.gov/employer.

Filing Some W-2’s on Paper and Others Electronically

• The payroll service we use files our W‑2’s for us electronically.  But we also have a few W‑2’s that our payroll service doesn’t handle (our executive staff payroll and some Accounts Payable items).  Do I have to file those W‑2’s electronically too?

A.  Only if you have 250 or more.  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, you can file up to 249 W‑2’s on paper.  But consider using e-file, if possible.

• For 20 or fewer W‑2’s, SSA’s W‑2 Online fill-in screens are the best choice.  For more than 20 W-2’s, consider creating and uploading an EFW2 file.
• If you must use paper Forms W‑2 and W‑3, see “Paper Forms” above.
  CAUTION:  E-file replaces paper filing.  DO NOT MAIL A PAPER FORM W‑3 OR COPY A OF W‑2 FORMS DUPLICATING E-FILED W-2’s!

Third‑Party Sick Pay
Q.  Our insurance company told me I have to make W‑2’s for the third‑party sick pay they paid for some of our employees.  What should I do?

A.  Follow instructions in Internal Revenue Service Publication 15‑A, Employer’s Supplemental Tax Guide.  You can submit third‑party sick pay W‑2’s separately from your company’s other W‑2’s, if you choose to.  (See the answer for “Filing Some W-2’s on Paper and Others Electronically” above.)  CAUTION:  “Recap” W-2’s described in Pub. 15-A must be filed on paper, not e-filed.

Find more information about W-2 or W-2c and e-file at:

• www.irs.gov – Tax Topic 752

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.)