2020 IRS Form W2 Changes 

2020 IRS Form W2 Changes

Aug 12, 2020

What Has Changed On The 2020 W-2

How Can Changes In The W-2 Affect Your Company?

It’s important to know what changes have been made to the W-2 filing process. Not complying with changes can lead to file rejections, delays for delivery of employee copies, and added costs of reprinting corrected W-2s and refiling Federal and State copies.

 

2020 IRS Form W2 Changes

IRS Form W-2 Security Changes

Due to security concerns the SSA now allows employers to truncate the social security numbers on employee W-2 copies. W-2s have been stolen from mailboxes, out of vehicles, and shared residencies. Truncating employee W-2s is a way to eliminate the ability of these thieves to file false information and claim refunds.

Employers may not truncate the SSN on copy A which is sent to the SSA.

 

Change Made Due To The Military Spouse Residency Relief Act

Due to a change to the MSRRA civilian spouses of service-members can elect to use the same residence for purposes of taxation as the service-member. Information is available at https://download.militaryonesource.mil/12038/MOS/Misc%20Files/MilSpouseResReliefAct.pdf

There has been a clarification on code P reporting in Box 12 of the W-2. Employers should only report moving expenses reimbursements paid directly to a member of the U.S. Armed Forces who moves per a military order and incident to a permanent change of station, which are excludable under section 132(g) of the Internal Revenue Code.

 

Change Made For Employers Subject to The Railroad Retirement Tax  

Awards compensating employees for lost wages are subject to Railroad Retirement Tax. The U.S. Supreme Court ruled that award payments to employees to compensate for working time lost due to an on-the-job injury is taxable “compensation” under the Railroad Retirement Tax Act (RRTA). If you are a railroad employer, you must withhold Tier 1 and Tier 2 taxes when you pay such awards to employees covered by the RRTA.

 

Information Regarding Changes Related to Disaster Tax Relief

Disaster tax relief. Disaster tax relief is available for those affected by recent disasters. For more information about disaster relief, go to https://www.irs.gov/newsroom/tax-relief-in-disaster-situations

 

Penalties Have Increase For Failure To Comply With W-2 Filing Requirements

According to the IRS W-2 Instructions For 2020:

Failure to file correct information returns by the due date. If you fail to file a correct Form W-2 by the due date and cannot show reasonable cause, you may be subject to a penalty as provided under section 6721. The penalty applies if you: 

    • Fail to file timely, 

    • Fail to include all information required to be shown on Form W-2, 

    • Include incorrect information on Form W-2, 

    • File on paper forms when you are required to e-file, 

    • Report an incorrect TIN, 

    • Fail to report a TIN, or 

    • Fail to file paper Forms W-2 that are machine readable. 

The amount of the penalty is based on when you file the correct Form W-2. Penalties are indexed for inflation. The penalty amounts shown below apply to filings due after December 31, 2020. 

The penalty is: 

    • $50 per Form W-2 if you correctly file within 30 days of the due date; the maximum penalty is $565,000 per year ($197,500 for small businesses, defined in Small businesses). 

    • $110 per Form W-2 if you correctly file more than 30 days after the due date but by August 1; the maximum penalty is $1,696,000 per year ($565,000 for small businesses). 

  • $280 per Form W-2 if you file after August 1, do not file corrections, or do not file required Forms W-2; the maximum penalty is $3,392,000 per year ($1,130,500 for small businesses).

 

For more information the complete instructions for the 2020 W-2 are available at: https://www.irs.gov/pub/irs-pdf/iw2w3.pdf

 

Aatrix Software is a leading provider of payroll tax reporting and single-point eFiling services. Over 300,000 businesses use Aatrix for payroll reporting in the US and Canada and processes millions of W-2s annually.

 

Our customers say it best!

 

“Aatrix is very easy to use and takes the pressure out of eFiling and using the correct forms. I remember when the social security number was moved a few years ago on the W2. It didn't matter that I didn't know before filing because Aatrix already had the correct form in the correct format!” 

Frank's Piggly Wiggly

 

Aatrix checks all the boxes when it comes to W2 filings. Aatrix is integrated into over 60 payroll applications and offers an easy to use stand alone filing option - w2.aatrix.com See why over 300,000 businesses and 97% of Aatrix filers would recommend the solution to others.

 

 





Category List


Tag List

Business Travel (1)
Future (1)
1094-C (2)
IRS (5)
940 (1)
ACA 1095 C&B requirements (3)
Standard Mileage Rate (1)
cyber attacks (1)
PTO Payout (1)
1099-G (5)
Payroll Tax Relief (1)
HIPAA (4)
HFSA (1)
Forms (1)
1099 NEC (7)
IRS Notice (2)
Form 941 (1)
Payroll Software (7)
Certified Payroll Reports (1)
Payroll Compliance (4)
Windows (3)
Paycheck (2)
Sage Solutions Provider (1)
workplace dynamics (2)
SMBs (1)
overtime (1)
American Rescue Plan (1)
Web Forms (1)
Federal (1)
Federal Payroll Reports (2)
Sick Leave (2)
Families First Coronavirus Response Act (1)
1094-B (2)
IRS Form 1099 NEC (3)
Sage Summit 2015 (1)
minimum wage (3)
Economic Security Act (1)
Payroll Reports (18)
CIO Review (3)
FMLA (1)
SSA (2)
employee retention (4)
Technology (3)
Tax Identification Number Verification (2)
Improvements (1)
EFTPS (1)
Rebranding (1)
Penalties & Fines (1)
remote office (2)
Sponsorship (1)
State Payroll Reports (3)
Cloud (1)
2020 IRS Form W-2 (2)
HR (1)
unemployment (6)
ACA e-filing (3)
Initiatives (1)
IRS Form 941 Changes (2)
Filing (1)
IRS Form 941 & 940 changes (3)
SUI (1)
Payroll Reporting (14)
vaccine (2)
Employee Benefits (1)
Payroll Tax (4)
Gig Economy (1)
ACA eFiling (4)
SSA Notice (2)
Growth (1)
1095 (6)
Top Software (1)
ACA (8)
IRS Form 1099 (3)
IRS Forms (1)
IRS 941 Form (2)
Deposit Schedule (1)
Sage 300 CRE (1)
Per Diem (1)
Medical Leave (1)
941-X (1)
New Hire Reporting (3)
1095-C (4)
e-File (1)
Biometrics (1)
Review (2)
ACA Reporting (5)
COVID-19 (8)
Social Security Number Verification (3)
IRS Tax Forms (2)
Recruiting & Retention (4)
Payments (1)
Cryptocurrency (2)
OEM Payroll (2)
Security (6)
Payroll (20)
1099 TIN Matching (6)
Accountant Shortage (1)
Sage Solutions (1)
IRS Notice 931 (1)
Payroll Solution (6)
IRS 1099 NEC Form (2)
I-9 (2)
Coronavirus (2)
Safe eFiling (1)
Payroll Taxes (5)
Travel Expenses (1)
Tax (2)
IRS Form 941 (3)
Millennials (2)
W-2 (12)
Virtual Currency (1)
Innovation (2)
independent contractors (1)
SOC2 (4)
ACA Compliance (3)
covid (2)
Ultimate Payroll (1)
Aatrix Software, Inc. (5)
FUTA (1)
Affordable Care Act (3)
IRS 7200 Tax Form (1)
Tax Return (2)
Enterprise (2)
State (1)
Top 10 (3)
CIO (3)
Payroll Tax Rates (1)
Tax Payments (1)
Coronavirus Aid (2)
B-Notice (2)
Social Security Withholding (3)
Tax Identification Number (2)
Quarterly Reports (1)
irstaxtip (1)
Sage (1)
Fraud (2)
1095-B (4)
Paid Leave (1)
Withholding (5)
1099-INT (2)
employees (1)
SUTA (1)
Mac (1)
Inflation (1)
work from home (1)
Workplace Efficiencies (1)
Company Of The Year (1)
Retirement Contribution Limits (1)
Top 100 (2)
Technology Companies (2)
SOC3 (2)
Child Tax Credit (2)
interest rates (1)
1099-K (4)
Human Resource (1)
Reporting (1)
Student Loan Relief (1)
Payroll Tax Notice (2)
eFile (6)
Aatrix Software (9)
1099 G (1)
New Logo (1)
payroll reporting changes (2)
Solution (3)
Payroll Tax Forms (5)
Aatrix (6)
1099-MISC (3)
Secure eFiling (2)
Social Security Wage Base (2)
HSA (1)
CV Technology Innovator Awards (1)
Taxes (2)
Paypal (1)
Medicare Tax (1)
Helpful Hints (1)
Paycheck Protection Program (1)
Accounting Solutions Provider (2)
Employee Travel (1)
Labor Shortage (1)
1099-PATR (2)
Electronic W-2 (1)
Solutions (2)
CP2100 (3)
TUG (1)
Year-End Deadlines (2)
Federal Taxes (1)
IRS Form W-2 (6)
Employee Retention Credit (2)
Top 50 (1)
941 (6)
EEO-1 (3)
Small Business (2)
Venmo (1)
Corrections (2)
Tax Free (1)
Sage Summit 2014 (1)
The Families First Coronavirus Response Act (1)
Employee Documentation (1)
Infrastructure (1)
CV Magazine (1)
Aatrix eFile (9)
Paycard (1)
Social Security Tax Deferral (1)
eFiling Thresholds (2)
Sage Summit (2)
Compliance (5)
Awards (1)
Dependent Care (1)
IRS Form W-3C (1)
CA Pay Data Report (1)
Accounting Solutions (2)
IRS 7200 Form (1)
TIN Matching Services (4)
IRS Form 7200 (1)
Travel During Covid (1)
Staff (1)
Payroll Tax Reporting (10)
TIN Matching (4)
w-4 (2)
Assessment (4)
1099 (11)
Employee Tax Credits (1)
eFiling (3)
e-Filing (1)
Reports (1)

Tag Cloud

FUTACV Technology Innovator AwardsPaycheck Protection ProgramPaid Leave1099-PATRChild Tax CreditCA Pay Data ReportFederal Payroll ReportsPayrolle-FileIRS NoticeWithholdingTop 100Employee TravelCloudIRS Form 1099PaycheckSick LeaveACA Reporting1094-CHFSAInflationEEO-1Social Security Wage BaseStaffState Payroll ReportsForm 941Standard Mileage RateNew Hire ReportingAccounting SolutionsPaycardCIO ReviewACA CompliancePayroll Tax FormsIRS Form 7200FormsFMLAFamilies First Coronavirus Response ActPaypalFederalInitiativesAatrix Software, Inc.1094-BIRS Form W-3CTechnologyPayroll SoftwareSage Summit 20151099 NECFederal TaxesTravel ExpensesEmployee DocumentationCV Magazine1099-INTSocial Security Number VerificationBiometricsInnovationIRS Form 941 ChangesAmerican Rescue PlanAatrix SoftwareemployeesPayroll ComplianceIRS Form W-2SUTAThe Families First Coronavirus Response ActB-NoticeTUGRecruiting & RetentionSecure eFiling1095payroll reporting changesI-9Payroll ReportsAssessmentCIOMedical LeaveRetirement Contribution LimitsSage SummitWorkplace EfficienciesSocial Security WithholdingHelpful HintsTIN MatchingPayroll Tax NoticeMillennialsFilingOEM PayrollAffordable Care ActPayroll Reporting1099 TIN MatchingElectronic W-2Coronavirus AidPaymentsRebranding1099-GIRS 7200 Tax FormPayroll SolutionTIN Matching ServicesWeb FormseFilingEnterpriseAccounting Solutions ProviderPer DiemTax ReturnStateIRS Form 941IRSMedicare TaxvaccineACAHSA940eFileSMBs941-XFutureAwardsQuarterly Reportse-FilingWindows1099 Ginterest ratesCP2100Year-End DeadlinesSSA NoticeSOC3ReportsIRS Form 1099 NEC1099Travel During CovidSmall Businesscyber attacksNew LogoPayroll Tax ReportingTaxesGig EconomyTop SoftwareHIPAATax FreeTax Identification NumberHuman ResourcePayroll Tax Relief1099-MISCLabor ShortageMacReportingGrowthIRS 941 FormTop 10Dependent CareEconomic Security ActCryptocurrencyIRS FormsVirtual CurrencyunemploymentACA 1095 C&B requirementsACA eFilingCorrectionseFiling ThresholdsSecurityPenalties & FinesIRS Tax FormsIRS 7200 FormACA e-filingIRS Notice 931ImprovementsSponsorshipcovidIRS Form 941 & 940 changesUltimate Payroll941remote officeAatrixHRTax Paymentsw-4SUIEFTPSSocial Security Tax DeferralTaxemployee retentionCOVID-19SolutionEmployee BenefitsTechnology CompaniesEmployee Retention CreditSage 300 CREwork from homeVenmoCoronavirus1099-KAatrix eFileReviewSafe eFilingComplianceBusiness TravelInfrastructurePayroll Tax RatesAccountant ShortageIRS 1099 NEC FormirstaxtipTop 50Payroll Taxworkplace dynamicsW-2Tax Identification Number VerificationSage SolutionsFraudEmployee Tax CreditsSOC21095-CStudent Loan ReliefSage Summit 2014Deposit Scheduleindependent contractorsovertimeSagePTO PayoutCertified Payroll Reports2020 IRS Form W-2Payroll TaxesSage Solutions ProviderCompany Of The YearSolutionsSSA1095-Bminimum wage


Archive