W-2 & 1099 Fact Center > W-2 FAQs > W-2 Electronic Filing FAQs
W-2 Efiling FAQs
What if corrections are discovered throughout the year that total more than 250? Do I file these on paper or electronically?
Any filer with 250 or more Forms W-2c during a calendar year must file them electronically, unless the Internal Revenue Service grants a waiver to the filer. For purposes of the electronic filing requirement, only Forms W-2c for the immediate prior year are counted. For example, if an employer must file 200 Forms W-2c for the immediate prior year (example: 2008) in March, 2009 and then discovers that another 100 Forms W-2c for the same year (2008) must be filed in August, 2009, only the 100 Forms W-2c that are filed in August must be filed electronically.
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Do corrections have to be filed in the same manner that the originals were filed?
Corrections do not have to be filed in the same manner that the originals were filed; however, any filer with 250 or more Forms W-2c during a calendar year must file them electronically.
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Can I e-file if I have less than 250 W-2s?
Yes. In fact, the Social Security Administration encourages e-filing as the preferred method of filing all W-2s.
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Do I need consent / signatures from employees to e-file?
No. The employer is responsible for reporting the information and for the accuracy of the data, so no signature is required from the employee.
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Is e-filing secure?
Yes. The Social Security Administration uses Secure Sockets Layer (SSL) communications protocol and 128-bit encryption to ensure data is transmitted securely over the Internet. This is a highly secure standard and is used by government agencies, software developers, and financial institutions.
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How do I e-file?
Most software companies work with the Social Security Administration to offer a W-2 e-filing option. Refer to your software package for the specific steps to e-file.
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How do I know if my submission was accepted?
Depending on the application used, you should retrieve submission statuses either from your software provider or directly from the Social Security Administration throughout the filing process. The receipt of your submission will likely be acknowledged with statuses such as “Received”, “In Process”, or “Complete”.
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What causes a file to be rejected, and what should I do if my initial submission is rejected?
The Social Security Administration does not publish all of the situations that will cause a filing to be rejected. However, some common reasons for rejections are:
- The sum of the Social Security wages and Social Security tips equals the prior year maximum.
- The employer’s EIN begins with 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 69, 70, 78, 79 or 89.
- The employee’s social security number begins with an 8 or 9
- The employee’s social security number is fictitious (for example 111111111, 333333333, or 123456789).
If you receive a notification indicating that your submission was rejected, you must fix any errors in the form and resubmit the data in the same manner as the original submission. Your updated file should be received by the Social Security Administration within 45 days from the date of rejection.
Rejections should not be confused with corrections. If you notice an error on a W-2 submission that has been filed with the Social Security Administration, you must correct the error by submitting a W-2c. For more information on corrections, see question 5.
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What penalties are associated with W-2 reporting?
If you fail to file a correct W-2 by the due date, and cannot show reasonable cause, you may be subject to a penalty. Penalties apply for:
- Failing to file on time
- Failing to include all required information
- Failing to meet electronic filing requirements
- Failing to file compliant paper forms
- Or, failing to include correct information
The amount of the penalty is based on when the W-2 is filed:
- $15 per Form W-2 if filed correctly within 30 days of the due date. The maximum penalty is $75,000 per year ($25,000 for small businesses).
- $30 per Form W-2 if filed correctly more than 30 days after the due date but by August 2. The maximum penalty is $150,000 per year ($50,000 for small businesses).
- $50 per Form W-2 if you file after August 2 or you do not file the required Forms W-2. The maximum penalty is $250,000 per year ($100,000 for small businesses).
- If failure to file a correct Form W-2 is due to intentional disregard of the filing or correct information requirements, the penalty is at least $100 per Form W-2 with no maximum penalty.
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Why are Forms W-3 (W-3c) not required when filing electronically?
When filing electronically, the information normally reported on Form W-3 (W-3c) is already part of the W-2 (W-2c) e-file submission in the total records portion of the file.
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Are there waivers available if I don’t want to and/or can’t e-file? If so, what is the process to apply for a waiver?
If you have a hardship and cannot file electronically, the Internal Revenue Service may waive the electronic filing requirement if you can show cause. To request a waiver, you must apply 45 days before the due date of the report using Internal Revenue Service Form 8508, Request for Waiver from Filing Information Returns Electronically.
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Filing Prior Year W-2s: How do I do this?
The entries on Form W-2 must be based on wages paid during the calendar year. If filing prior year information electronically, follow your software provider’s instructions for filing previous year information.
If filing a prior year W-2 on paper, the year printed on Form W-2 must match the year for which the wages were paid. Also file the prior year Form W-3 that matches the year of the Forms W-2 being filed.
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