Switch to W-2 filing extended

August 31, 2017

In 2016, the Iowa Department of Revenue promulgated rules which require electronic filing of W-2 forms for Iowa businesses. To allow additional time to implement these new requirements, the Department has proposed new rules extending the phase-in for one year.

As proposed, the amendment will only require withholding agents with at least 50 employees to file W-2 forms electronically for tax years 2016 and 2017. The requirement that all withholding agents file W-2 and 1099 forms electronically will take effect with tax year 2018 rather than 2017. Interested persons may make written comments on the proposed amendment on or before September 19, 2017. Written comments on the proposed amendment should be directed by mail to Legal Services, Department of Revenue, Hoover State Office Building, P.O. Box 10457, Des Moines, Iowa 50306-0457; or by e-mail to alana.stamas@iowa.gov.

The previously adopted rules phased in the new filing requirements over two years. For tax year 2016, only withholding agents with at least 50 employees were required to electronically file W-2 forms with the Department. For tax year 2016, any withholding agents could voluntarily file 1099 forms and withholding agents with fewer than 50 employees could voluntarily file W-2 forms. For tax year 2017, the rule required all withholding agents to electronically file W-2 and 1099 forms with the Department.