Time Frame

• According to IRS rules, employers must furnish the W-2 form to their employees by January 31, even if they receive an extension for filing. A W-2 must be filed with the IRS and Social Security by February 28 if filing by mail and March 31 if filing electronically.
  
  

Features

• The W-2 form must be filed for every employee who received income, Social Security or Medicare taxes withheld from their paychecks. It must also be filed for employees who would have had income tax withheld if they hadn't taken withholding allowances or exemptions.
  
  

Penalties

• Employers who fail to distribute W-2 forms to their employees by January 31 without reasonable cause face a penalty of $50 per form up to a maximum fee of $100,000. Intentionally disregarding the requirement to provide W-2 forms can is punishable by a fine of $100 per form with no maximum penalty, as of November 2010. Employers that file fraudulent W-2 forms can be sued for up to $5,000.