The Internal Revenue Service (IRS) reminds employers and other businesses of the January 31 deadline that now applies to filing Form W-2 wage statements and independent contractor forms.
The Protecting Americans from Tax Hikes (PATH) Act of 2015 started a requirement for employers to file their copies of Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by January 31.
Certain Forms 1099-MISC, Miscellaneous Income, filed with the IRS to report non-employee compensation to independent contractors also are due at that time. Such payments are reported in box 7 of the form.
The IRS can more efficiently verify income that individuals report on their tax returns because of the January 31 deadline; this helps prevent fraud. The IRS advises employers to file these forms correctly and timely to avoid penalties. According to the IRS, its e-file is the quickest, most accurate and convenient way to file these forms.
Automatic extensions of time to file Forms W-2 are not available. The IRS will grant extensions only for very specific reasons. Details can be found on the instructions for Form 8809, Application for Time to File Information Returns.
For more information, read the instructions for Forms W-2 and W-3 and the Information Return Penalties page at IRS.gov.
Standard Mileage Rates
The IRS issued the 2019 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning January 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) is:
• 58 cents per mile for business miles driven (up 3.5 cents from the rate in 2018).
• 20 cents per mile driven for medical or moving purposes (up 2 cents from the rate in 2018).
• 14 cents per mile driven in service of charitable organizations (same as 2018).
CalChamber members can read more about Expense Reimbursements in the HR Library on HRCalifornia.com.