Question: We have employees in several states and would like to require that all employees (current and future) have an accessible email account so we can electronically provide all Form W-2s and paystubs. Can we do this?
Answer: A best practice would be for your company to establish a secure, company-wide email system for all employees to access and/or receive all company communications, Form W-2s, paystubs and more. Federal Form W-2 compliance requirements are complex and require attention to detail, so consider working with a payroll vendor to implement an electronic system for wage statements and W-2s.
Note that if you allow employees to use a personal email address for business purposes, they must give you consent to use that personal email address. Consider also that this usage triggers the issue of whether an employee must be paid for the time he or she spends reading emails from work on a personal account (as compensable hours).
Employers may set up a system to furnish Forms W-2 electronically. Each employee participating must consent (either electronically or by paper document) to receive his or her Form W-2 electronically, and you must notify the employee of all hardware and software requirements to receive the form. You may not send a Form W-2 electronically to any employee who does not consent or who has revoked previously provided consent.
To furnish Forms W-2 electronically, you must meet the following disclosure requirements and provide a clear and conspicuous statement of each requirement to your employees:
You must furnish electronic Forms W-2 by the same due date as the paper Forms W-2. You will also need to review any state laws that may be applicable.
Offering electronic W-2s can streamline year-end tax reporting and improve efficiency, but employers must follow specific IRS requirements and obtain proper employee consent to remain compliant. Overlooking these details can result in penalties and employee dissatisfaction.
Axcet HR Solutions helps small and mid-sized businesses navigate payroll compliance requirements, including electronic tax form distribution, to ensure accurate and lawful practices.
Learn more about our payroll compliance services and how we can support your business.
Written by
Jo McClure, CPP, is the Director of Payroll Administration at Axcet HR Solutions, where she has been a pivotal leader for over 20 years. With more than two decades of experience in payroll outsourcing and professional employer organizations (PEOs), Jo specializes in helping small to mid-sized businesses navigate payroll administration, employee benefits, and compliance.
Her strategic leadership at Axcet focuses on implementing best practices in payroll management, compliance auditing, and risk mitigation. Jo obtained her Certified Payroll Professional (CPP) designation in 2006 and has held numerous leadership roles in the Greater Kansas City Chapter of the American Payroll Association, including President, Vice President, and Chapter Coordinator. A frequent speaker at the Midwest Regional Payroll Conference, she has also contributed articles to publications such as Thinking Bigger Business and Kansas City Small Business Monthly.
Jo's specialties include payroll implementation, compliance auditing, and crafting best-practice payroll solutions that ensure businesses stay compliant while optimizing their processes.
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