.jpg)
OMB Update, Deadlines, & Compliance Rules for the W-2
As year-end approaches, employees will soon start asking when they will receive their W-2s. This is your cue to focus on year-end payroll compliance and make sure everything is in order.
The IRS and Social Security Administration have announced new updates, deadlines, and tighter compliance rules for 2025. Staying on top of these changes helps you avoid penalties and ensures a smoother tax season for both your business and your employees.
This guide covers the five most important Form W-2 changes for 2025 and gives you practical tips to stay compliant, efficient, and ready to support your employees.
Note: This information is for informational purposes only and does not constitute formal tax, legal, or compliance advice. Always consult with qualified tax advisors, legal counsel, and your organization’s internal teams for guidance specific to your situation. Additional regulations may apply. For the most accurate and up-to-date information, refer to official government resources and regulatory agencies.
1. The OMB Number Has Changed for 2025
Every official IRS form carries an OMB (Office of Management and Budget) number that signals its validity for the current tax year. For 2025, the W-2’s OMB number has changed to 1545-0029 (from 1545-0008). Before printing or distributing any forms, double-check that your W-2s display this new number in the upper right corner. (Form W-2 New OMB Number)
Why this matters: The OMB number confirms your W-2 is current for IRS and SSA tracking. Using the wrong form can cause processing delays, compliance notices, and IRS penalties. Check that your payroll provider or software is using the correct forms for 2025.
2. Filing Deadlines Are Earlier Than You Think
While it might be tempting to wait until after the holidays to start, early preparation is your best defense against mistakes and late nights. Allocate time now to review employee information, reconcile payroll, and fix any issues before you’re left scrambling in January.
This year, the deadline for both furnishing W-2s to employees and filing with the SSA is February 2, 2026 (since January 31 is a Saturday). Whether you mail forms or deliver them electronically, make sure everything is sent or delivered by this date. Missing the deadline can result in penalties and frustrated employees who are unable to file their tax returns on time.
Here’s what the IRS outlines for late or incorrect forms:
- $60 per form if filed within 30 days of the deadline
- $130 per form if filed after 30 days but before August 1
- $340 per form if filed after August 1 or not filed at all
- $680 per form for intentional disregard
These penalties apply separately for failing to furnish forms to employees and for not filing with the SSA. (Form W-2 Penalties)
Plan ahead and pay close attention to these details. A little extra care now can save your business thousands of dollars later.
3. How W-2s Must Be Distributed in 2025
To Employees
W-2s must be mailed to employees unless they choose electronic delivery. Many employers use secure portals or self-service platforms, but you need clear employee consent for electronic forms. Regardless of how you deliver W-2s, ensure they are sent or made available by the February 2, 2026, deadline. Remind employees early about electronic options to increase adoption and avoid postal delays. (Furnishing Form W-2 to Employees)
To the Social Security Administration (SSA)
Alongside distributing to employees, you must submit a copy of each W-2 to the SSA. Most employers are now required to file electronically. If your business files 10 or more W-2s, you must file electronically using the SSA’s Business Services Online (BSO) portal. Electronic filing is faster, more secure, and reduces errors, but you need to register and get credentials in advance. Plan ahead so you are ready before the deadline. (Form W-2 E-Filing Requirements)
4. Understanding W-2 Form Boxes
The W-2 form is more than a summary. Each box must show accurate wage, tax, and benefit information. Here is a quick reference to the most important boxes:
- Box 1: Wages, Tips, Other Compensation – Shows total taxable wages for federal income tax purposes.
- Box 2: Federal Income Tax Withheld – Includes all federal withholding for the year.
- Box 3: Social Security Wages – Capped at $176,100 for 2025. Amounts above this are not subject to Social Security tax.
- Box 4: Social Security Tax Withheld – Calculated based on Box 3.
- Box 5: Medicare Wages and Tips – No cap. Includes all taxable earnings subject to Medicare tax.
- Box 6: Medicare Tax Withheld – Includes both standard and, if applicable, Additional Medicare Tax for high earners.
- Boxes 12 and 14: Special Codes and Benefits – These include but are not limited to 401(k), 403(b), SARSEP, and 457(b) elective deferral (Codes D, E, F, S), SIMPLE IRA deferral, amongst others.
(Full Instructions for Form W-2)
Why this matters: Mistakes in any box can trigger IRS notices for both you and your employees. Make sure your payroll system is updated for 2025 and that all limits and codes are correct. If you are unsure, check the latest IRS instructions or ask your payroll provider.
5. Need More Time? Use the Correct Extension Forms
If you need more time to give W-2s to employees, submit IRS Form 15397 before the original deadline. The IRS only grants extensions for extraordinary circumstances, such as natural disasters or major business disruptions. Make sure the form is filled out accurately. (About Form 15397)
To request more time for filing W-2s with the SSA, use IRS Form 8809. File as early as possible. Extensions are not automatic and you must have a valid, documented reason. Keep records of your request and any correspondence for your compliance files. (About Form 8809)
Why W-2 Form Accuracy and Timeliness Matter in 2025
When forms are prepared correctly and delivered on time, employees can file their taxes without delays, your business avoids unnecessary corrections, and year-end closes out with confidence. By focusing on precision and meeting deadlines, you not only stay compliant but also demonstrate care for your workforce and set the stage for a stress-free start to the new year.
Start your year-end planning now to give your team a confident, compliant W-2 season. And if you’d like support along the way, our team is here to make the process simpler every step of the way.
