Update on Payroll and Retirement Plan Changes Impacting 2016 and 2017

Federal and state regulations are constantly changing, and subsequently, such changes impact the payroll process, filing dates, and retirement plan contributions each year. To assist in compliance with these new regulations, the following important changes are described below for filing 2016 forms and limitations impacting 2017.

Payroll Filing Dates, Rates and Limitation Changes
New W-2 and 1099 Filing Deadline

Beginning with 2016 forms filed in 2017, employers are required to submit forms W-2 and W-3 to the Social Security Administration (SSA) on or before January 31 of the year following the calendar year to which the return relates. This change applies regardless of whether the W-2 returns are filed on paper or electronically. Many states (such as Virginia) require W-2s to be filed electronically unless you receive an approved waiver. This information can be found on the individual state’s Department of Taxation website.

The deadline for filing forms 1099-MISC reporting nonemployee compensation in box 7 and corresponding 1096s with Internal Revenue Service (IRS) has also been moved to January 31 each year.

Additionally, the IRS no longer allows an automatic 30-day extension in which to file forms W-2 and W-3 with the SSA, and the IRS has indicated it will grant a 30-day extension of time to file only in limited cases for extraordinary circumstances or catastrophe. Under the new due date regime, a taxpayer seeking an extension of time to file must submit a form 8809 by the January 31 deadline. The 8809 must include a detailed explanation of why the taxpayer needs additional time and must be signed by the taxpayer under penalties of perjury.