W-2 and 1099 filing due by January 31st.
The date for Filing 2020 W-2’s and 1099’s for non- employee compensation (box 7) is January 31st 2021. There are stiff penalties for missing this due date.
Penalties for Late or Incorrect W-2s
Penalties are assessed based on the date when a correct W-2 is filed or furnished to employees:
- $50 per W-2 if filed within 30 days of the due date.
- $100 per W-2 if filed more than 30 days from the due date but before August 1st.
- $260 per W-2 if filed later than August 1st, if no correction is filed, or if no W-2 is filed at all.
If a business submits Form 1099 within 30 days from the due date, the penalty is $30 per form. If you file the form more than 30 days late but before Aug. 1, the penalty is $60 per form. The penalty increases to $100 for any form filed after Aug. 1 or not filed at all.
Taxpaying businesses may apply for a 30-day extension on filing a 1099 form by completing Form 8809, an Application for Extension of Time to File Information Returns. You may submit Form 8809 either electronically or on paper, and need not sign the form. However, the extension only takes effect if the business applies for it before the due date.