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PATH Act throws obstacles in Payroll’s way

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Congress has enacted the Protecting Americans from Tax Hikes Act of 2015, or PATH Act, which is the tax extenders bill, and an omnibus spending bill (P.L. 114-113). The PATH Act accelerates the filing date for both paper and electronic Forms W-2s and 1099-MISC to Jan. 31, beginning with forms filed in 2017. It also extended several key payroll ­provisions.

W-2/1099-MISC provisions. In addition to pushing up and consolidating the W-2/1099-MISC filing deadline, the law authorizes the IRS to issue regulations that will allow you to truncate employees’ Social Security numbers on their W-2s.

Since you must file forms on the same day they’re due to payees, the law establishes a safe harbor from penalties for failing to file correct forms and failing to provide payees with correct forms. Under the safe harbor, you won’t be liable for penalties if the error for any single amount is $100 or less ($25 or less if the errors involve tax...(register to read more)

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