The Iowa Department of Revenue announced that employers of less than 50 employees will not be required to file Forms W-2 for calendar year 2017. Instead, the Department is delaying this requirement for small employers until calendar year 2018, due in 2019.

Employers of 50 or more employees continue to be required to submit Forms W-2 electronically to the Department. The deadline for employers of 50 or more employees to file calendar year 2017

Forms W-2 is January 31, 2018. (Iowa regulation section 701.46.3(3).)

In addition, the requirement to file Forms 1099/W-2G is also delayed by one year. No employer is required to file Forms 1099/W-2G with the Department for calendar year 2017.

Small employers have another year to comply with electronic filing requirement

In order to give small businesses additional time to comply with Form W-2/1099 filing requirements, the Department is making the following changes to tax year 2017 filing requirements:

— Businesses with less than 50 Forms W-2 will not be required to file for tax year 2017.
— No entities will be required to file Forms 1099/W-2G for tax year 2017.

These are the same requirements in place for tax year 2016. The change delays the filing requirement for businesses with fewer than 50 Forms W-2 until tax year 2018.

What are businesses required to file?

— Businesses with 50 or more Iowa Forms W-2 for calendar year 2017 must electronically file by January 31, 2018.
— Businesses with 50 or more Iowa Forms W-2 in tax year 2016 which received a filing extension for tax year 2016 must electronically file on or before January 31, 2018.

Employers with less than 50 employees may, but are not required to, electronically file calendar year 2017 Forms W-2 with the Department by January 31, 2018.

History

As we previously reported, effective for tax year 2016 (filed in 2017), a regulatory change requires Iowa employers with at least 50 employees to file Forms W-2 electronically with the Iowa Department of Revenue. Employers with less than 50 employees were not required to submit Forms W-2 for calendar year 2016.

The original regulatory change provided that for calendar year 2017 (filed in 2018), all employers, including those with less than 50 employees, would be required to file Forms W-2 electronically by January 31, 2018. The change delays the requirement that all employers file Forms W-2 electronically to calendar year 2018, due in 2019.

Department had not required filing of Forms W-2 for several years

For calendar years 1999 through 2015, employers were not required to submit Forms W-2 with their Verified Summary of Payment (VSP) reconciliation forms to the Department. Employers were only required to submit Forms W-2 within three years upon a request from the Department.

Filing of Forms 1099/W-2G will also be required for calendar year 2018

Beginning with calendar year 2018, all payers issuing Forms 1099 and W-2G are required to submit these forms to the Department by January 31, 2019. This is a one-year delay from the original requirement that these forms be filed for calendar year 2017.

Withholding agents may, but are not required to, electronically file calendar year 2017 Forms W-2G and 1099 with the Department by January 31, 2018.

Failure to comply may result in penalties

Failure to electronically file Forms W-2 (and 1099/W-2G) if required may result in the assessment of penalties unless the employer requests in writing a hardship extension of the requirement to file electronically. Upon approval, the Department would extend the electronic filing requirement to the 2020 tax year.

No change to withholding tables for calendar year 2018

The Department announced that there will be no change to the income tax withholding tables for calendar year 2018. Employers should continue to use the withholding tables that have been in effect since April 1, 2006.

For more information on filing Forms W-2 with the Department, including the 2017 specifications, go to the Department's website.

———————————————

———————————————
ATTACHMENT

EY Payroll News Flash