CSLB Contractor's Law & Business Practice Exam

By what date must an employer furnish an employee with a completed IRS Form W-2?

1. December 31st

2. January 15th

3. January 31st

4. February 28th

The correct answer is: January 31st

An employer must furnish an employee with a completed IRS Form W-2 by January 31st of the following year in which the employee earned the income. This deadline is crucial as it allows employees enough time to prepare their tax returns accurately and on time. Providing the W-2 form by this date ensures that employees have documentation of their earnings and withholding amounts, which are essential for filing federal and state income tax returns. The other dates mentioned are not compliant with IRS regulations for W-2 issuance. For instance, December 31st falls before the end of the tax year, making it impossible to report the complete earnings for the year. January 15th is also inappropriate, as it does not adhere to the January 31st deadline established by the IRS. Additionally, February 28th is too late, as employers miss the January 31st deadline and could face penalties for lateness in issuing the W-2 forms. Thus, January 31st stands as the correct and legally mandated deadline for employers to provide employees with their completed W-2s.