Missed Deadline for updating W2s. How to reconcile?

[Vinorita116]

We switched payroll providers in 2023 (1st year in business) AND we missed the deadline to update our W2s & add (prior) teammates to Square. How do we reconcile?? 

[Lovewell]

@Vinorita116 You are going to have to call and see if a square representative can direct you to someone who can help you. All our employees have already received their W2s from square payroll.

[Med-Spa-Vegas]

short version - Square are no help whatsoever in this, I have had a similar issue and after numerous calls, I never got s solution and Square couldn't help.

[Lovewell]

@Med-Spa-Vegas That makes sense. Once a deadline has passed square also has to make their own deadlines to get it in the hands of their users to stay in line with federal guidelines. I am not surprised things were not able to

Be changed after the deadline. 

[Med-Spa-Vegas]

It makes zero sense.

A man walked on another planetary object over 60 yrs ago, yet Square can't access a server and forward some data? 

If my bank can tell me every transaction I have made in the last 20 yrs then Square can access a W2.

From a tech point of view it is simple and takes milliseconds.

This is 100% a conscious choice Square are making, not a tech hurdle that is difficult to over come.

[Med-Spa-Vegas]

I have got 3 frustrated employees and 2 disgruntled CPAs and an Enrolled Agent who have all independently said that the PDF W2 forms Square provided electronically are not usable.

It is my first year as an employer so never knew paper copies were a thing, so never had the option selected in Square.

As the deadline for paper W2 being mailed was 4 Jan, I now have employees who don't have a paper copy of their W2s.

Square have said that after 4 Jan it is impossible to send a paper W2.

I now have no idea how to fix the mess....

Any ideas?

[Donnie-M]

@Med-Spa-Vegas If the employee consents to receive the w-2 electronically then you are perfectly legal to NOT send a paper copy to the employee.  This is common and accepted practice.  The second thing is, if the employee gets a w-2 pdf...just print it out.  I don't see the reason the pdf is unusable??!

If the file was corrupted and unreadable that is a different issue.  If you can see the w-2 in payroll (I don't use payroll currently) you would be ok printing it out and handing it to them.  There isn't really a penalty to employers for sending a w-2 late or within 30 days for January 31st (60$ per w-2 is all the IRS penalizes) and you can file a https://www.irs.gov/forms-pubs/about-form-8809 to get a 30 day extension.  But I personally in my experience don't think either of these apply, you furnished a copy of the w-2 and the employee had consented to it.  Asking for a paper copy after the deadline is on the employee, but I still think you should do what you can to fix it.  The important thing is the information was transmitted to the IRS.

[Med-Spa-Vegas]

Thanks for the reply.

Unfortunately, as CPAs and EAs won't accept them it is a moot point 😞

[Donnie-M]

Hey, I get the frustration, and maybe it is something to do with your state or area.  But, me personally, I would be a bit concerned if my cpa demanded paper copy only as the form is really straightforward and the only the irs is going to really look at is the tax transcript that is reported on their records which should match any w-2.  But that is why we have the forums, to exchange viewpoints and whatnot.

[frances_a]

Hello @Med-Spa-Vegas 

Welcome to our Seller Community. 

I'm sorry to hear that troubles brought you to us. 

Unfortunately, payroll tax advice is beyond the scope of support we offer here in the Community. 

Similarly, our support team is not equipped or allowed to provide sellers with tax advice. 

One thing I can tell you is that we have received no other reports of tax professionals not accepting electronic forms from sellers using Square Payroll.

We strive to offer our sellers features that are compliant with their local laws, which is why you'll find that we advise sellers to ensure they receive consent from their employees to distribute W-2 forms electronically. 

If you'd like to learn more about W-2s, check out this article.

Thank you ✨

DISCLAIMER: Square cannot offer any tax advice or consultation services. Tax compliance is your responsibility. We do not guarantee the applicability or accuracy of our tax tools. If you have any questions about your tax obligations, consider consulting a professional tax advisor.