September 13, 2011
The reporting of employees’ wages for state unemployment insurance purposes may be required in the future—perhaps on the 15th of the month following the end of the quarter. Forty-one states have started using an Alternate Base Period (ABP), allowing former employees to file for benefits based on earnings for the most recent quarter.
Historically, employers have only been required to report wages by the end of the first month after the end of each quarter.
The IRS Commissioner recently announced an initiative to consider accelerating W-2 reporting so the information is available to the IRS during the tax season. Currently, employers can file the information as late as March 31, giving the IRS access essentially after tax season ends, or, at best, at the very end of tax season.
Source: American Payroll Association’s Capital Summit; Payroll Tax Forum, September 16, 2011
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