Do businesses need to issue W-2 forms every year?

Annual Requirement to Issue W-2 Forms in Alabama

As of 2026, businesses operating in Alabama are required to issue W-2 forms to all employees annually. This federal payroll tax form reports wages paid and taxes withheld during the calendar year.

Operational Steps for Issuing W-2 Forms

• Prepare W-2 forms for each employee by January 31 following the end of the tax year.
• Distribute copies to employees for their personal tax filing and to the Social Security Administration (SSA) for wage reporting.
• File W-2s electronically or by mail with the SSA, depending on the number of employees.
• Maintain accurate payroll records throughout the year to ensure correct wage and tax information.

Related Payroll Compliance Considerations

• Alabama state income tax reporting: Coordinate W-2 data with state withholding requirements.
• Employee classification: Ensure workers are properly classified as employees or contractors to determine W-2 issuance.
• Recordkeeping: Retain copies of W-2 forms and payroll records for at least four years for audit readiness.
• Automation: Utilize payroll software to streamline W-2 preparation and filing processes.