Clever RX
3 min read

Pros of Electronic W-2s

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How Do Electronic W-2s/ACA/1099s Benefit the Employee?    

In today’s world, easy access to information is a must have!  With that image-png-2said, allowing your employees to print their W-2s and other tax forms (1099/ACA/1095s) is an attractive perk that forward thinking companies are utilizing. Enabling your employees to access their electronic W-2s and other tax forms is not only a wise business decision, it makes life easier for both the employee and the employer. Not only will your employees appreciate immediate access to their W-2s and other tax forms, but they will also have peace of mind knowing that they are available when needed. Through the employee portal electronic W-2s, and the other noted tax forms, can easily be accessed from a phone, laptop, or desktop computer . Accessing your tax forms through a familiar place like the employee portal makes perfect sense. One login to view your paystub, enroll in benefits and access W-2s. Another huge incentive to employees is having early access to their tax reporting forms, allowing them to file taxes quicker, and possibly receive a refund sooner. This is yet another incentive to help convince employees to enroll in the electronic W-2 process.

 How Do Electronic W-2s/ACA/1099s Benefit the Employer?

There are also many benefits to enabling electronic W-2s/1095s for the employer! NoScreenshot 2021-01-04 123140 more form distributions. No more lost forms. No more repeated requests for W-2s for mortgage applications, car loans, etc. The burden is lifted from the HR/payroll department while enabling employees access to download their forms at any point in time. HR/payroll will no longer need to track and manage the distribution of paper W-2s and other downloadable tax forms. Freeing up hours in the payroll department to better serve your business.

 Afraid it is complicated and costly to set up electronic tax form processing – you may be pleasantly surprised… If your business has equipped employees with a self-service portal it is easy for your payroll provider to set up electronic W-2 distribution. By law, the employees are required to give their permission. Once the employees have given their permission the payroll company will activate electronic tax form (W-2/ACA/1099) distribution. Employees will then receive an email stating that their forms are available in their portal. Your company may enroll for electronic tax form distribution at any point during the year until the last payroll. However, as with most things in life, it is best not to wait until the last minute and to start the process earlier in the year. Ideally, you would begin enrollment during the on-boarding process when hiring your employees.

It’s a Win - Win!

Electronic W-2s/ACA/1099s are helpful for all involved… it saves the employer time and money. And it gives the employee peace of mind knowing they can access their tax information whenever they need it.

To see how simple it is to download an electronic W-2 watch this video.

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