2024 Form W-2 Updates
Key Changes You Need to Know

New Box 12 Code for Medicaid Waiver Payments

For the 2024 tax year, a new Box 12 code (Code II) is added to report Medicaid Waiver Payments. This update is critical for employers who process these payments, ensuring accurate income reporting.

• Box 12, Code II will now be used to report income that qualifies for exclusion under the Medicaid Waiver Payment program.
• Be sure to include this code if you have employees involved in Medicaid Waiver programs to avoid misreporting income.

Social Security Wage Base Increases

The Social Security wage base has increased for 2024. The new threshold for taxable earnings is $168,600, up from $160,200 in the previous year. Employers should be aware of the following:

• Box 3 (Social Security Wages) and Box 7 (Social Security Tips) should reflect wages up to $168,600.
• Box 4 (Social Security Tax Withheld) should show a maximum of $10,453.20, calculated as 6.2% of $168,600.
• The Social Security and Medicare coverage threshold for household wages is now $2,700 for 2024.
• If the Employment Code is H (Household) and the tax year is 1994 or later, the total of the Social Security wage field and the Social Security Tips field must meet or exceed the annual Household minimum for the respective tax year being reported.

This update directly impacts employee pay reports and Social Security tax calculations for the 2024 tax year.

Updated Penalties for Late Filings

The IRS has adjusted penalties for late or incorrect filing of Form W-2 to keep pace with inflation. Below is a summary of the penalty schedule for the 2024 tax year:

Employers should be aware of these increases and ensure that W-2 filings are made on time to avoid hefty fines.

W-2 Filing Deadline for 2024 tax year

For the 2024 tax year, the deadline to file Form W-2 with the IRS and distribute employee copies is January 31, 2025. If this date falls on a weekend or a holiday, the deadline shifts to the next business day.

Meeting this deadline is essential to avoid penalties and ensure timely processing of employee tax documents.

Why E-File Form W-2 for 2024?

E-filing Form W-2 provides numerous advantages, At TaxZerone, we offer simple and affordable e-filing solutions that help businesses file their W-2 forms with ease. Here are some features you'll benefit from:

• Accurate and Compliant Filing: Ensure error-free submissions with built-in form validations for compliance.
• Bulk Upload Support: Effortlessly upload multiple W-2 records at once to save time.
• Instant Employee Copies via Email: Quickly email W-2 copies to employees, saving time and money.
• Cost-Effective E-Filing: Benefit from the best pricing based on your filing volume.
• Form-Based Filing Interface: Input employee information directly through a user-friendly interface.
• Guided Filing Experience: Clear instructions and prompts guide you through the e-filing process with ease.

How to File Form W-2 for the 2024 Tax Year with TaxZerone

Filing Form W-2 for the 2024 tax year is straightforward with TaxZerone. Follow these simple steps to ensure compliance and accuracy:

• Fill Out Form W-2
  Provide all necessary details, including employer and employee information, wages, and tax withholdings.
• Review & Transmit the Return
  Carefully verify all the data for accuracy and submit the W-2 form directly to the SSA through TaxZerone.
• Send the Employee's Copy
  Easily and securely distribute the employee’s copy using ZeroneVault's electronic delivery, simplifying the process for both employers and employees.