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Ohio Lowers Forms W-2 Electronic Filing Threshold

Ohio Lowers Forms W-2 Electronic Filing Threshold

In a recent tax alert, the Ohio Department of Taxation announced the threshold for electronic filing of W-2 and 1099-R information for 2021 (submitting in 2022) to be lowered. Under this new change, all employers and retirement system payers that issue 10 or more W-2/1099-Rs will be required to upload the information electronically.  Before this, the threshold was 250 or more forms, as listed in a previous Department notice.

When uploading these, Forms W-2 may be uploaded via the Ohio Business Gateway (OBG) – employers should note that magnetic media is not accepted. Also new this year, the deadline to submit has been extended to March 2nd, 2022, rather than January 31st, 2022, to help employers comply with the new threshold that was put into place.

Previously, the IRS proposed regulations amending the rules for filing electronically that reduced 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).

Currently, the threshold to return electronic filings is 250. The TFA has authorized that they should gradually reduce this to 10 returns - which would lower the threshold to 100 returns for the year 2022 (returns for 2021 filed in 2022) and 10 returns beginning January 1, 2023. 

Will Hart, Director of Payroll Tax at GMS, explained this in more detail, “This change will have its largest impact on small employers that are currently running in-house payroll. In the past, a small employer could get W2s from their payroll system and simply mail a copy to the state.” Hart continued, “Now, they’ll either need to generate a file in the proper format, or type all of those W2s into the Ohio Business Gateway. Programming for a file will be costly and typing the W2s into the OBG will be time consuming. Being with GMS eliminates both of those problems because we’re already filing electronically; and have been for many, many years.”

If you’re looking to relieve your payroll headaches, we can help you! Contact us today to get started.



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