How do I e-file W-2 forms for my employees?

AlexL0823

I understand you need help e-filing W-2 forms for your employees, and I'm here to guide you through the process step by step.

AlexL0823

First, it’s important to know that W-2 forms are not filed directly with the IRS.

They must be filed with the Social Security Administration (SSA).

The SSA then shares the data with the IRS.

You will use the SSA’s Business Services Online (BSO) portal to file electronically.

AlexL0823

Step 1: Register with SSA Business Services Online (BSO)

1. Go to the official BSO website.

2. Create an account if you do not already have one.

• You will need:
  • Personal and business information (including your EIN).
  • Username and password.
  • Multifactor authentication for security.

3. After registration, request access to appropriate BSO services:

• W-2 Online: For manually entering W-2 data (best for fewer than 50 forms).
• Wage File Upload: For payroll software that generates EFW2 files.

Step 2: Prepare Your W-2 Files

• Use payroll software compliant with SSA’s specifications to generate the EFW2 file.
• This file is a plain text file with fields of fixed lengths and precise formatting.
• Ensure the file includes:
  • Employee Social Security numbers.
  • Wages, taxes withheld, and other relevant payroll data.
  • Your employer information.
  • Double-check that all required fields are populated and accurate.

Step 3: Submit Your W-2 File on BSO

1. Log into your BSO account.
2. Navigate to the “Submit a Wage File” option.
3. Select the appropriate tax year and indicate whether you are filing for your own business or on behalf of a client.
4. Upload your EFW2 file.
5. The BSO system will validate your file format and data structure:

• • If errors are found, the system will reject the file, and you must correct it before resubmitting.
  • If accepted, you will receive a confirmation receipt.

Step 4: Save the Confirmation Receipt

• Print or save the confirmation receipt for your records.
• This serves as proof that you filed on time.
• The SSA will process the forms and share the necessary data with the IRS.

Step 5: Distribute W-2 Forms to Employees

• You must provide each employee with their W-2 form by January 31st following the tax year.
• Delivery can be paper or electronic.

Step 6: Filing Requirements

• If you file 250 or more W-2s, electronic filing is mandatory.
• Even for fewer forms, e-filing is recommended as it is faster and more secure.
• If filing by mail, include Form W-3. When e-filing, the information from Form W-3 is embedded in the electronic file.

AlexL0823

After uploading, the system will validate your file:

• If it passes, you will receive a confirmation number.
• If there is an error, you will get an error report that shows what needs to be corrected.
• Keep the confirmation number as it serves as proof of filing.

AlexL0823

The SSA handles W-2 forms because they primarily report wages and Social Security information.

The SSA then forwards the data to the IRS for tax processing.

This is why the BSO portal is the correct platform for filing W-2s.