Clever RX
2 min read

Why Electronic W-2s Are The Better Choice

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Electronic W-2s are faster, easier and more secure than paper W-2s! For starters, the distribution method is immediate – no waiting around for deliveries, no distribution issues, no lost W-2s, no middleman. As soon as the W-2 is available it shows up in the employee’s self-service portal (ESS). It stays there as long as the employer deems it available. Employees may access and print their W-2 from any computer or mobile device providing they can access their ESS portal. Providing electronic W-2s lifts the responsibility from the employer and gives more accessibility to the employee. Providing electronic W-2 distribution is more efficient, less costly, and mutually beneficial for both the employer and the employee.

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Electronic W-2s are easy to set up and more economical to distribute than paper W-2s. It’s a paperless solution which lowers expenses for mailing and distribution. Needless to say, it is a more environmentally friendly solution than mailing and distributing paper W-2s.  No more waiting for the delivery to arrive.  No more worries about inclement weather or distant employees.  Everyone receives 


their W-2 instantly as soon as it is made available in the ESS portal by your payroll provider.  W-2s are effortlessly distributed allowing employees to file their taxes earlier.  Employees enjoy having instant access to their W-2, whenever they need it, without having to search through paper files. No more lost W-2s . . . employees no longer need to keep track of where they “filed” it.  Another added benefit is that there are no more requests for a copy of the W-2 for mortgage loans or car loans. If an employee needs a copy of their W-2 it is available to print or access through their ESS portal anytime they need it. Other tax forms like the 1099s, ACA, and 1095s are also available in the ESS portal.


In order to enable electronic W-2s the employee needs to give their permission to change their W-2 status from paper to electronic distribution. This can happen at any point during the year, but we advise our clients to sign up before December to beat the year-end financial crunch. Educating your employees to make the switch to electronic W-2s may take a some convincing, but it will be worth the effort. The best way to sign-up employees for electronic W-2 distribution is during the onboarding process. While the new hire is filling out employee forms, such as their W-9, W-4, etc. have them also sign-up for electronic W-2 distribution.

There are many benefits to promoting electronic W-2s to your employees. Giving your employees the power to access their W-2s while also lifting the burden from HR/payroll is a significant plus. Switching to electronic W-2s will save your business time and money freeing up hours in payroll to better serve your business.

If your interested in learning more about electronic W-2s contact AAP.