Tax Alert: New Electronic Filing Rules for W-2s and 1099sFiling more than 10 W-2s or 1099s for your business?

1/25/2024 - By Frank Riehle, CPA, CIT

The IRS has updated the filing requirements for W-2s and 1099s. This change reduces the threshold for electronically filing these forms from 250 returns to 10 or more returns for the 2023 tax year. Therefore, if your business has 10 or more W-2s and 1099s, you are required to file electronically. The new threshold is effective for information returns required to be filed in calendar years beginning with 2024. The new rules apply to tax year 2023 Forms W-2 because they are required to be filed by January 31, 2024. 

To determine whether your business needs to file electronically, add together the number of information returns you file in a calendar year. If the total is at least 10 returns, you must file them all electronically. For a full list of information return forms included in the threshold, visit The IRS's Filing Requirements List.

A penalty applies if you file returns on paper that were required to be filed electronically. If you need to file a correction and the original return was submitted electronically, you will need to submit the correction electronically. If you are unable to comply with this new requirement, you can submit a Form 8508 (Application for a Waiver from Electronic Filing of Information Returns).

Filing Deadlines

  • The deadline to submit the W-2s to the Social Security Administration (SSA) is January 31, 2024.
  • The most common 1099s (1099-NEC, Nonemployee Compensation and Form 1099-MISC, Miscellaneous Information) are due to the recipients by January 31, 2024.
    • Form 1099-NEC also must be filed with the IRS by January 31, 2024, regardless of whether filed on paper or electronically.
    • Form 1099-MISC must be filed by January 31, 2024, if filed in paper, but can be filed by February 28, 2024, if filed electronically.
  • A 30-day extension can be obtained by filing Form 8809 (Application for Extension of Time to File Information Returns) with the IRS and you must identify the extenuating circumstances that are preventing you from filing by the stated due date.

Questions?

The Saltmarsh Tax Team can assist with navigating the new return filing requirement, including registering for an account with the SSA and IRS. Contact us today to see how we can help you!

About the Author | Frank Riehle, CPA, CIT

Frank is a shareholder in the Tax & Accounting Services practice of Saltmarsh, Cleaveland & Gund. Frank began his career in 1991 and has expertise in the manufacturing, construction, retail, restaurant and other service-related industries. Frank also works with the firm’s clients in the areas of tax planning and business planning.

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