Penalty for Employer Not Sending W2 refers to the legal consequences faced by employers who fail to provide their employees with a W-2 form, which is a crucial tax document used to report wages and taxes withheld during a tax year. The W-2 form is essential for employees to file their personal income taxes accurately and on time, and employers are legally obligated to provide this document to their employees by January 31st of the following year. Failure to do so can result in significant penalties and legal repercussions.
The penalties for not providing a W-2 form vary depending on the specific circumstances and the number of employees affected. The Internal Revenue Service (IRS) may impose monetary fines ranging from $50 to $250 per W-2 that is not provided, with a maximum penalty of $3 million per year. Additionally, the IRS may pursue legal action against employers who willfully fail to provide W-2 forms, which could result in criminal charges and further penalties.
