The Pennsylvania Department of Revenue recently changed the electronic filing requirement threshold for W-2 forms. Employers who file 10 or more W-2 forms with the department are now required to file those forms electronically.
This change is in effect for Tax Year 2018 filings. Employers should visit e-TIDES, the department’s online system for business taxes to file the Annual Withholding Reconciliation Statement (REV-1667), which had a deadline of January 31, 2019. Copies of the individual wage withholding statement (W-2) must also be filed electronically with the form REV-1667. The department will grant a waiver for the 2018 tax-filing season with regard to the electronic filing requirement, but it is encouraging employers to take advantage of this option, which is quick, easy and secure.
This change is part of a larger effort to embrace technology to serve taxpayers better and update departmental operations. The department gains many efficiencies in processing by shifting from paper to electronic records.
To this point, the department continues to receive a large number of W-2 records via fax and on compact discs. It takes significant information technology resources to transfer these records into the department’s computer systems manually. Also, if an employer submits paper W-2s, the department must use an entirely manual process to key the taxpayer’s information into its systems, slowing processing times and increasing the potential for error.
The move toward more electronic filing also helps the department increase the security of taxpayer data and safeguard against tax refund fraud. The change is also in line with other electronic filing requirements the department has implemented for other returns and informational statements.
If you have any questions regarding the electronic filing, please visit the Department’s Business Taxes e-Services Center or call 717-787-7635.
If you have additional questions where we might be of service, please call 215-723-4881 or contact us online.