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W-2 Processing Delays for 2025 Form 944 Employers

May 05, 2026
Employers filing Form 944 may face W-2 processing delays due to enhanced SSA fraud checks, which can also delay updates to employees’ Social Security and IRS wage records. These delays do not affect Form 941 filers.
Alert
Alert

At a glance

  • Form 944 employers may experience delays in Form W-2 processing due to enhanced Social Security Administration (SSA) fraud-prevention measures affecting Form W-2 validation and posting.
  • Employees may similarly experience delays in updates to Social Security earnings histories and IRS wage information displays.
  • These processing delays affect annual Form 944 filings, not quarterly Form 941 filings.

Summary

Employers filing Form 944 for tax year 2025 may experience delays in the processing of employee Form W-2 data due to additional SSA fraud prevention measures now in place.

The SSA and Internal Revenue Service (IRS) work together to post earnings records to individual accounts, enabling employees to file their personal tax returns. As part of this process, the SSA receives W-2 data from third-party payroll processors, such as Paylocity,for initial validation and acceptance. After the SSA processes the data, it shares this information with the IRS to support validation of individual tax return filings.

Due to Form W-2 processing delays with the SSA, employees may experience delayed updates to the following:

  • Social Security earnings records used to determine eligibility for certain government benefits.
  • Informational returns (Form W-2, Wage and Tax Statement) displayed in IRS systems for tax year 2025.

Next Steps

Paylocity continues to monitor communications from the SSA related to these enhanced security measures and their effect on W-2 processing. We will share updates regarding confirmed timelines or resolution milestones as information becomes available

Thank you for choosing Paylocity as your valued service partner. This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney, or Advisor.

About the Author

Paylocity CGR Team Paylocity CGR Team Paylocity

Paylocity's Compliance & Government Relations (CGR) team combines expertise in policy, payroll tax, and HCM to help shape seamless solutions in a constantly evolving environment. By partnering with government agencies and industry leaders, they transform emerging regulatory trends into innovative and intuitive product enhancements.

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