Common Errors on Forms W-2 (and How to Avoid Them)

The Form W-2 is one of the most important tax documents businesses must file each year. It provides information to employees, the Social Security Administration (SSA), the IRS, and state and local governments. Even small mistakes can cause processing delays, penalties, or IRS rejections.

Here are some of the most common errors employers make when preparing Forms W-2—and how to avoid them:

Frequent W-2 Filing Errors

1. Omitting the decimal point and cents from entries.

   • Always report amounts accurately to the cent.

2. Using ink that is too light to make entries.

   • Only use black ink to ensure the form is scannable.

3. Incorrect font size.

   • Avoid entries that are too small or too large. The IRS recommends 12-point Courier font, which is also used in W-2 filing software.

4. Adding dollar signs ($) in amount boxes.

   • Dollar signs are not required on Copy A of the W-2 and should not be included.

5. Improperly checking the “Retirement plan” box in Box 13.

   • This box should only be checked if the employee was an active participant in a retirement plan during the year.

6. Misformatting employee names.

   • Enter the first name and middle initial in the first box, surname in the second box, and suffix (if applicable) in the third box.

Best Practices for Accurate W-2 Filing

• Double-check all entries for accuracy before submission.

• Use IRS-approved W-2 e-file software to minimize errors.

• Submit W-2s to the SSA and provide copies to employees by the January 31 deadline.

Key Takeaways

• Accuracy is critical when filing W-2s to avoid IRS rejections.

• Always use the correct ink, font, and formatting.

• Employers should leverage professional W-2 software to save time and reduce errors.

W-2 Filing Solutions
Choose electronic filing for your W-2 forms and simplify payroll reporting. Our secure software makes it easy to e-file directly with the IRS and SSA, or you can outsource the entire project to our experienced team. Save time, reduce costs, and ensure accuracy every filing season.

Call our sales office at (480) 706-6474 to get started.