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New filing deadline for 2016 W-2 and 1099 Forms

Employers and small businesses face a new January 31, 2017 filing deadline for W-2 and 1099 -MISC Forms.

The Protecting Americans from Tax Hikes (PATH) Act, enacted in December of 2015, included a new requirement for employers.  W-2 Forms must now be submitted to the Social Security Administration (SSA) by January 31st of each year.  Previously, W-2 Forms were required to be given to the employees by January 31st and filed with the SSA by February 28th if filing on paper or March 31st if submitting electronically.  An employer may apply for a 30 day, one-time, extension on Form 8809; the extension is not automatic.  Employers would be wise to review their employee and payroll data well before the end of the year for possible correction.

The PATH Act also changed the filing deadline for Form 1099-MISC to January 31st.  Previously businesses were required to deliver the 1099 Forms to the recipient by January 31st and file with the IRS by February 28th.   No extensions are available and penalties will apply for late filing or forms that are incomplete.  Forms filed with incomplete information that are later corrected will be considered late and penalties will be assessed.

Businesses are strongly advised to check the information on file for vendors for whom they may be required to issue a 1099-MISC Form.  Take this time between now and December 31st to verify the records and make any necessary updates or changes.

Note:  Other 1099 Form, 1099-INT, 1099-B, 1099-DIV, etc.  are not affected by this change.  The filing deadline for those forms remains February 28th.