Government Regulations

Government procedures dictate the processes and procedures for year-end payroll tax reporting. To avoid extra fees and penalties, it is important that you be familiar with current government tax reporting regulations before you set up and process year-end information.

Important: The IRS information that is contained in this publication is believed to be accurate at the time of publication. However, it is not the sole source of information that you require when you fill reports or returns with the IRS and SSA. For complete information and for guidance about filing requirements, see the appropriate government publication or regulation.

The following IRS filing requirements apply to the year-end processes that are described in this guide:

Requirement	Description
Electronic filing requirements	For employers who file more than a certain number of Copy A forms for W-2s, 499R-2s, or 1099s, the IRS requires that they submit an electronic file instead of sending Copy A forms. Some states also require employers to file state copies on electronic filing. For electronic filing requirements contact the IRS. Note: Any forms submitted in 2024 for the 2023 tax year must be submitted electronically.
Employer ID numbers	For information reported on W-2s, 499R-2s, and 1099-Rs, the IRS regards each EIN as a separate entity. In the system, all companies that have the same federal tax identification number can be reported under the same identification (ID) number. You can summarize to this level, or you can process each company independently.

Requirement

Description

Electronic filing requirements

For employers who file more than a certain number of Copy A forms for W-2s, 499R-2s, or 1099s, the IRS requires that they submit an electronic file instead of sending Copy A forms. Some states also require employers to file state copies on electronic filing. For electronic filing requirements contact the IRS.

Note: Any forms submitted in 2024 for the 2023 tax year must be submitted electronically.

Employer ID numbers

For information reported on W-2s, 499R-2s, and 1099-Rs, the IRS regards each EIN as a separate entity. In the system, all companies that have the same federal tax identification number can be reported under the same identification (ID) number. You can summarize to this level, or you can process each company independently.