In an effort to combat fraud, The Protecting Americans from Tax Hikes (PATH) Act of 2015, was passed by Congress and signed by President Obama in December. The act revises the filing deadline for Form W-2 and certain types of Form 1099.
Until now, employers had two dates to keep in mind when remitting W-2’s:
• January 31, to provide employee copies, and
• February 28, for paper filings submitted to the Social Security Administration (March 31 for electronic filings)
Beginning with 2017 tax season for filing tax year 2016 1099 forms, employers will now have one filing deadline for all Federal W-2s, January 31. This is true for both employee and agency copies, or whether filing paper or electronic returns.
What happens to Form 1099-Misc?
The new January 31 deadline applies to certain types of 1099s. If you’re filing Form 1099-Misc and reporting amounts in Box 7: Nonemployee Compensation, then you will need to meet the new filing deadline of January 31.
If you don’t have amounts in Box 7, then the deadline remains February 28 for paper filings or March 31 for electronic filings.