As of this posting, February 8, 2024, the City of Manchester has failed to provide correct W-2 documents to City employees. Form W-2 is filed by employers to report wages, tips, and other compensation paid to employees as well as FICA and withheld income taxes. Some employees received incorrect W-2 documents and some employees have received no documents thus far.
City Department Heads were tasked with informing their departmental employees about the lack of W-2s.
A 2015 law made it a permanent requirement that employers file copies of their Form W-2, Wage and Tax Statements, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by January 31. Forms W-2 are normally due to workers by January 31.
IRS charges penalties for each information return employers fail to correctly file on time and each payee statement employers fail to provide. Therefore, it would seem that the City of Manchester is not in compliance with Internal Revenue Service requirements as an employer and subject to penalties.
The maximum penalty is different for small businesses and large businesses including government entities. There is no maximum penalty for intentional disregard. IRS charges interest on penalties.
City employees are expressing frustration with lack of communication about W-2s. A City employee told Thunder Radio, “It’s in turmoil, nobody knows what is going on. It’s the biggest mess!”
Thunder Radio requested a statement from Lisa Myers, Director of Finance for the City of Manchester and from Manchester Mayor, Marilyn Howard.
The following statement was provided:
“Forms W-2 are commonly corrected by employers, hence a method the IRS provides for this occurring. Once we realized there was an error, the mayor and employees were immediately notified. Since that time, we have been working with our payroll provider to issue corrected forms. Per IRS information, we have until the end of February to provide a Form W-2c. We anticipate distributing this form to our employees before that time. In addition, the finance team has diligently worked on needed corrections and have ensured measures are in place to prevent this situation from occurring in the future. We regret any inconvenience this has caused.”