For 2021 Forms W-2 due to the Ohio Department of Taxation (DOT) in 2022, employers that issue 10 or more W-2 forms must file them electronically. Previously, the threshold was 250 or more Forms W-2 [DOT, Tax Alert, 11-12-21].
Forms W-2 may be uploaded via the Ohio Business Gateway (magnetic media is not accepted). To help employers comply with the new, lower threshold, the deadline to submit Forms W-2, along with employer withholding reconciliation returns and school district withholding reconciliation returns, has been extended to March 2, 2022, from January 31, 2022.
Federal Proposal to Lower Electronic Filing Threshold
Earlier this year, the IRS proposed regulations amending the rules for filing electronically that reduce the threshold for filing information returns (e.g., Forms W-2, 1099). The proposed amendments reflect changes made by the Taxpayer First Act of 2019 (TFA).
The current information return electronic filing threshold is 250 returns. The TFA authorizes the IRS to gradually reduce the threshold to 10 returns. The proposed reduction would lower the threshold to 100 returns for tax year 2022 (i.e., returns for 2021 filed in 2022) and 10 returns beginning January 1, 2023.
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Lia Coniglio, Esq., is Managing Editor of PayState Update and Senior Manager of State Payroll Information Resources for the APA
