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Don’t miss the Groundhog Day tax deadline!

Mark your calendar: February 2, 2026 is a critical tax deadline for your business.

Normally, businesses must send out certain tax forms by January 31. But since that date falls on a Saturday this year, the deadline moves to the next business day—which happens to be Groundhog Day!

What’s Due on February 2?

Here’s what you need to furnish to recipients AND file with the government by February 2, 2026:

Forms for Employees: W-2 and W-3

Form W-2 (Wage and Tax Statement)

• Shows wages paid and taxes withheld for each employee in 2025
• Must be given to your employees
• Must be filed with the Social Security Administration (SSA)
• Critical for calculating your employees’ Social Security and Medicare benefits

Form W-3 (Transmittal of Wage and Tax Statements)

• Required if you’re filing Form W-2
• Transmits all your W-2 forms to the SSA
• The totals must match what you reported on your quarterly payroll tax forms (Form 941, 943, 944, or Schedule H)

Forms for Independent Contractors: 1099-NEC

Form 1099-NEC (Nonemployee Compensation)

You need to issue this form if you meet ALL of these conditions:

• You paid someone who is NOT your employee
• The payment was for services related to your business
• You paid an individual, partnership, estate, or (sometimes) a corporation
• Your total payments to that person were $600 or more in 2025

Important note: You may have heard that the threshold is increasing to $2,000. That’s true, but not yet! The $2,000 threshold applies to payments made in 2026 (that you’ll report in early 2027). For 2025 payments reported now, the threshold is still $600.

Other Forms: 1099-MISC

You may also need to furnish Form 1099-MISC by February 2 if you made payments of $600 or more for:

• Rent
• Medical expenses
• Prizes and awards
• Attorney’s services
• Other specific payment types

Filing deadline with the IRS:

• Paper filing: March 2, 2026 (the normal February 28 deadline falls on a Saturday)
• Electronic filing: March 31, 2026

How to Furnish Forms to Recipients

When you “furnish” a form to someone, you can:

• Hand it to them in person
• Send it electronically (if they’ve consented)
• Mail it via first-class mail to their last known address

If you’re mailing forms, they must be postmarked by February 2, 2026.

Why This Deadline Matters

Missing the February 2 deadline or including incorrect information can result in IRS penalties. These penalties add up quickly and are completely avoidable with proper planning.

Beyond penalties, remember that:

• Your employees need their W-2s to file their personal tax returns
• Contractors need their 1099-NECs for the same reason
• The information affects Social Security and Medicare benefits
• Late or incorrect forms create headaches for everyone involved

Your Action Plan

This week:

• Confirm you have current addresses for all employees and contractors
• Double-check that your payroll records are complete and accurate
• Verify which contractors received $600 or more in 2025

Before February 2:

• Prepare all required W-2s and 1099-NECs
• Review forms for accuracy (names, Social Security numbers, amounts)
• File electronically when possible—it’s faster and more secure
• Mail or deliver forms early to avoid last-minute issues

Need Help?

Tax form preparation can be complex, especially when you’re juggling multiple employees and contractors. We can help you:

• Determine which forms you need to file
• Ensure all information is accurate and complete
• Meet the February 2 deadline without stress
• Avoid costly penalties for late or incorrect filing

Don’t let the Groundhog Day deadline sneak up on you! If you have questions about W-2s, 1099-NECs, or any other tax forms, reach out to your Padgett advisor today. We’ll make sure you’re compliant and ready to go—no shadows or surprises.

The post Don’t miss the Groundhog Day tax deadline! appeared first on Padgett.