Employers must file their copies of Forms W-2 and W-3 with the Social Security Administration by Jan. 31, the Internal Revenue Service reminded employers in a Jan. 18 news release.

In addition, Jan. 31 is the deadline for Form 1099-NEC, which pertains to nonemployee compensation to independent contractors. 

The deadline is strict; the IRS only grants extensions for “very specific reasons,” the agency said. 

Penalties for late submission can add up quickly, especially for large businesses. Companies submitting up to 30 days late can incur a penalty of $50 per form, rising to $110 from 31 days through Aug. 1, and up to $630 for “intentional disregard.” For a company with 5,000 employees filing all forms after Jan. 31, that could amount to a $250,000 penalty.

As a best practice, the IRS recommends reaching out to employees to verify and update their names, addresses and Social Security numbers, as applicable. 

The IRS has provided guidance on filing Forms W-2 and W-3.